- GBP/USD has been drifting higher as Conservatives have come on top in a by-election.
- US Nonfarm Payrolls and speculation about the vote in Scotland are set to move the currency pair.
- Friday's four-hour chart is painting a bullish picture.
Hartlepool – a place where many GBP/USD traders are unable to locate on the map – is breaking the typical pre-Nonfarm Payrolls silence. Prime Minister Boris Johnson's Conservatives have won a by-election for the Northern seat, defeating the opposition Labour Party in its heartland. Such a victory provides some political calm.
Counting in a long list of other local and regional elections is moving slowly, but speculation about Scotland's elections is set to increase. The pro-independence Scottish National Party (SNP) is close to winning an absolute majority, paving the road for another clash with London over a new referendum.
However, the sweep toward the ruling Tories south of the border may imply a pro-unionist majority up north. That would boost sterling. Investors prefer political stability over drama, and at least the standoff in Jersey seems to wane off. The British Navy retreated from the island after a protest of French fishermen ended peacefully. The row over fish is minuscule in economic terms but drew markets' attention.
Sterling has stabilized after the Bank of England announced it would slow the pace of purchasing bonds, but maintain the total buying plan unchanged. The initial reaction was positive, but the pound retreated after BOE Governor Andrew Bailey insisted the move was not tapering.
BOE Quick Analysis: Slowing the printing press sends sterling higher, why more may be in store
On the other side of the pond, all eyes are on April's Nonfarm Payrolls figures. The world's largest economy is expected to have gained nearly one million jobs last month amid a rapid recovery. Figures leading to the publication were somewhat disappointing, but the fact that President Joe Biden summoned a press conference for after the release may imply the data is strong. Robust figures could boost the dollar.
US Nonfarm Payrolls April Preview: When the economy booms, its all about rates
Which force is stronger, UK politics or the US economy? While the NFP causes jitters, sterling could still come on top.
GBP/USD Technical Analysis
Pound/dollar is benefiting from upside momentum on the four-hour chart and has surpassed the 50 and 100 Simple Moving Average in its latest upwsing. These are bullish developments.
Some resistance is at the weekly high of 1.3940, followed by 1.3978, last week's peak, and then by 1.4010.
Support is at 1.3860, Thursday's swing low, and then by 1.3825 and 1.38.
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 trades at yearly lows below 1.0500 ahead of PMI data
EUR/USD stays on the back foot and trades at its lowest level since October 2023 below 1.0500 early Friday, pressured by persistent USD strength. Investors await Manufacturing and Services PMI surveys from the Eurozone, Germany and the US.
GBP/USD falls to six-month lows below 1.2600, eyes on key data releases
GBP/USD extends its losses for the third successive session and trades at a fresh fix-month low below 1.2600. This downside is attributed to the stronger US Dollar (USD) as traders continue to evaluate the Fed's policy outlook following latest data releases and Fedspeak.
Gold rises toward $2,700, hits two-week top
Gold continues to attract haven flows for the fifth consecutive day and rises toward $2,700. XAU/USD continues to benefit from risk-aversion amid intensifying Russia-Ukraine conflict. Investors keep a close eye on geopolitics while waiting for PMI data releases.
Ripple surges to a new yearly high; XRP bulls aim for three-year high of $1.96
Ripple extends its gains by around 10% on Friday, reaching a new year-to-date high of $1.43 and hitting levels not seen since mid-May 2021. The main reasons behind the rally are the announcement that the US SEC's Chair Gary Gensler will resign and the launch in Europe of an XRP ETP by asset management company WisdomTree.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.