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.
EUR/USD rebounds toward 0.9800 after NFP-inspired drop
EUR/USD has gathered recovery momentum and advanced toward 0.9800 after having declined sharply in the early American session with the initial reaction to the US jobs report. In September, Nonfarm Payrolls rose by 263,000, surpassing the market expectation of 250,000.
EUR/USD News
GBP/USD struggles to pull away from 1.1100
Although GBP/USD managed to erase a small portion of its daily losses, it continues to trade in negative territory near 1.1100. The renewed dollar strength on upbeat labour market data from the US weighs on the pair, which remains on track to end the week little changed.
GBP/USD News
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