GBP/USD
Cable rose further in early Friday’s trading, extending the rally on Thursday (up nearly 0.80%) sparked by unexpected acceleration in US weekly jobless claims (strongest rise in five months).
Additional support for sterling came from UK GDP data which showed that economy grew by 0.3% in January after contracting by 0.5% in December and beating forecast for 0.1% expansion, adding to expectations for another BOE rate hike in the policy meeting on March 23.
All eyes are on US February non-farm payrolls, due later today (205K f/c vs 517K Jan), which is expected to offer more clues on the Fed’s next steps and provide fresh direction signal.
Technical studies on daily chart have improved after Thursday’s rally signaled formation of Doji reversal pattern and generated bullish signal on return and close above 200DMA.
However, fresh bulls will need more work at the upside to boost positive signal as moving averages (except 200DMA) remain in bearish setup and 14-d momentum is still in the negative territory.
Bulls face headwinds at initial barrier (10DMA at 1.1965), which guards more significant 1.2000/08 (psychological / 20DMA), 1.2049 (Fibo 38.2% of 1.2447/1.1802) and 1.2073 (base of falling weekly Ichimoku cloud).
Firm break of these barriers is needed to boost reversal signal and open way for stronger recovery, while early upside rejection would generate initial signal of recovery stall and keep in play risk of return to Wednesday’s low at 1.1802 (the lowest since late November).
Res: 1.1965; 1.2000; 1.2049; 1.2073.
Sup: 1.1898; 1.1840; 1.1820; 1.1802.
Interested in GBP/USD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
![EUR/USD stays below 1.1100, looks to post weekly losses](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/european-euro-coin-on-top-of-american-dollar-bill-11292130_XtraSmall.jpg)
EUR/USD stays below 1.1100, looks to post weekly losses
EUR/USD continues to trade in a narrow range below 1.1100 and remains on track to end the week in negative territory. Earlier in the day, monthly PCE inflation data from the US came in line with the market expectation, failing to trigger a reaction.
![GBP/USD struggles to find a foothold, trades near 1.3150](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-157771037_XtraSmall.jpg)
GBP/USD struggles to find a foothold, trades near 1.3150
GBP/USD stays on the back foot and trades in negative territory at around 1.3150 on Friday. The US Dollar holds its ground following the July PCE inflation data and doesn't allow the pair to stage a rebound heading into the weekend.
![Gold retreats toward $2,500 ahead of the weekend](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/gold-bars-50657756_XtraSmall.jpg)
Gold retreats toward $2,500 ahead of the weekend
Gold stays under modest bearish pressure and declines toward $2,500 in the American session on Friday. The 10-year US Treasury bond yield edges higher toward 3.9% after US PCE inflation data, causing XAU/USD to stretch lower.
![Week ahead – Investors brace for NFP amid Fed rate cut speculation](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Employment/NFP/america-back-to-work-gm178972493-25143312_XtraSmall.jpg)
Week ahead – Investors brace for NFP amid Fed rate cut speculation
Here comes another NFP week, with investors eagerly awaiting the results as they try to discern the size and pace of the Fed’s forthcoming rate cuts. The weaker than expected July numbers triggered market turbulence, instilling fears about a potential recession in the US.
![Easing Eurozone inflation to back an ECB rate cut in September](https://editorial.fxstreet.com/images/Macroeconomics/Countries/Europe/Eurozone_countries/Eurozone/eu-flags-flying-at-the-european-commission-building-brussels-belgium-24759579_XtraSmall.jpg)
Easing Eurozone inflation to back an ECB rate cut in September Premium
Eurostat will publish the preliminary estimate of the August Eurozone Harmonized Index of Consumer Prices on Friday, and the anticipated outcome will back up the case for another European Central Bank interest rate cut when policymakers meet in September.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.