GBPUSD at a brink of collapsing, eyes on the 1.1000 threshold
- The US Nonfarm Payroll report showed that the country added 265K jobs in September.
- Wall Street holds on to intraday losses but pared the bleeding.
- GBP/USD cannot bounce ahead of the weekly close, hinting at more pain ahead.
Following the US monthly employment report, the American dollar rallied, pushing GBP/USD down to an intraday low of 1.1089. According to the Bureau of Labor Statistics, the country added 265K new jobs in September, beating expectations, while the Unemployment Rate unexpectedly slid to 3.5%. The strength in the sector left the path clear for the US Federal Reserve to keep hiking rates at the whopping pace of 75 bps per meeting.
The greenback’s rally lost steam after Wall Street’s opening, as stocks hold on to pre-opening losses without extending their slumps. Some profit-taking ahead of the weekend has helped major pairs to bounce, but that’s not the case for GBP/USD, which currently battles to retain the 1.1100 threshold.
GBP/USD technical outlook
The GBP/USD pair is down for a third consecutive day and not far away from the weekly low posted on Monday at 1.1085. Technical readings in the near-term support a bearish continuation in the near term, particularly if the pair pierces the mentioned weekly low. The next relevant support level is 1.1024, September 30 daily low.
Chances of recovery are pretty much null, although a corrective advance may surge if the pair recovers beyond the 1.1130 price zone.
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