GBP/USD: Traders await US employment data amid Brexit jitter


  • GBP/USD trades a shade lower than 1.3100 ahead of European open on Friday.
  • The pair declined to the month’s low after pessimism surrounding Brexit and USD strength took their toll on Thursday.
  • While 1.3090 and 1.3030 can offer immediate support to the pair, 1.3185 acts as strong upside resistance.

GBP/USD seesaws near 1.3100 before London open on Friday. The pair recently dropped after lack of Brexit progress and disappointments from the ECB pushed markets toward the US Dollar. While on-going Brexit saga can continue affecting pair moves, the US jobs report for February month can also play its part to entertain traders.

Thursday couldn’t please Cable buyers as various news conveyed the EU-UK difference on Irish backstop delivering no Brexit deal and fewer chances of having one before next week’s British parliament voting on the UK PM Theresa May’s second referendum.

Sellers gained control after the European Central Bank (ECB) disappointed global market with its growth and inflation forecast cut joining hands with a change in forward guidance and new TLTRO.

Latest developments on the Brexit suggest the UK PM is likely pushing the EU leaders to accept her Irish backstop plan. However, the EU has already given time till Friday end to the British policymakers to come up with something new for Irish backstop to regain the region’s confidence.

In case of the February month US jobs report, the headline nonfarm payrolls (NFP) are likely to have softened to 180K from 304K while the average hourly earnings (YoY) might have increased to 3.3% versus 3.2% earlier. Also, the unemployment rate bears the consensus to test 3.9% against 4.0% prior.

GBP/USD Technical Analysis

1.3090 is likely immediate support for the GBP/USD pair, a break of which can further drag it to 1.3030 and then to 200-day simple moving average (SMA) figure of 1.2990.

On the upside, the pair needs to overcome the 1.3185 support-turned-resistance to revisit 1.3260 and 1.3310 resistances.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD consolidates losses as Fed moderates message

EUR/USD is trading above 1.1350, consolidating losses. The Fed's Bullard and Chair Powell have conveyed a balanced message, boosting the greenback. Treasury Secretary Mnuchin said 90% of the deal with China is done.

EUR/USD News

GBP/USD trades below 1.2700

GBP/USD is trading below 1.2700. BOE Gov. Carney said the BOE may cut rates in case of a no-deal Brexit. Boris Johnson has rattled markets by saying leaving the EU by October 31st is "do or die."

GBP/USD News

USD/JPY sticks to gains near 107.70, looks to snap 7-day losing streak

Following the sharp upsurge witnessed during the European trading hours, the USD/JPY pair has gone into a consolidation phase and is now moving in a relatively tight range in the upper half of its daily trading range.

USD/JPY News

Gold finds some support near $1400 mark, lacks follow-through

Gold held on to its weaker tone through the early North-American session, albeit pared a part of its intraday slide to the $1400 neighbourhood post-US economic data.

Gold News

EIA: Crude inventories decreased by 12.8 million barrels, WTI inches closer to $60

In its weekly petroleum report for the week ending June 21, the Energy Information Administration (EIA) announced that the commercial crude oil inventories in the United States decreased by 12.8 million barrels from the previous week. 

Read more

Majors

Cryptocurrencies

Signatures