• Today’s softer UK macro data capped an attempted up-move.
• Downside remains supported on the back of subdued USD demand.
• Investors await the release of key US monthly jobs report.
The GBP/USD pair quickly reversed an early European session bullish spike but has still managed to hold its neck above the 1.3800 handle.
The pair did get a minor boost and jumped to an intraday high level of 1.3831 amid a subdued US Dollar price-action. The up-move turned out to be short-lived and quickly ran into some offers in wake of weaker than expected UK macro releases - manufacturing/industrial production and trade balance data.
The pair, however, has managed to find some support near the 1.3800 handle and was seen consolidating overnight sharp rejection slide from the 1.3910-20 heavy supply zone.
Heading into today's key event risk - NFP release, traders also seemed reluctant to place aggressive bets, which further contributed to the pair's subdued/range-bound price action through the mid-European session.
Today's release of the NIESR UK GDP Estimate might influence the GBP price dynamics but the key focus would remain on the keenly watched US monthly jobs report, which might help determine the pair's next leg of directional move.
Technical levels to watch
Any further up-move beyond the 1.3830 level (session tops) is likely to confront resistance near the 1.3865 region, above which the pair is likely to make a fresh attempt towards conquering the 1.3900 handle.
On the flip side, the 1.3800-1.3795 region now seems to have emerged as an immediate support, which if broken could drag the pair towards 1.3765 horizontal support en-route the 1.3730 area.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.