GBP/USD keeps the red below 1.2000 mark amid modest USD uptick post-NFP


  • GBP/USD edged lower during the early North American session in reaction to the upbeat US NFP report.
  • The US economy added 372K new jobs in June (268K expected) and the jobless rate held steady at 3.6%.
  • The data reaffirmed bets for aggressive Fed rate hikes and continued lending support to the greenback.

The GBP/USD pair struggled to capitalize on its intraday bounce from the 1.1920 region and attracted fresh selling in reaction to mostly upbeat US employment details. The pair was last seen trading around the 1.1985-1.1980 region, down nearly 0.35% during the early North American session.

The intraday US dollar pullback from a two-decade high was quickly bought into after the headline NFP showed that the US economy added 372K jobs in June. This was slightly below the previous month's downwardly revised reading of 384K, though it was well above the 268K anticipated. Adding to this, the Unemployment Rate held steady at 3.6%, as expected, and cemented expectations for a more aggressive policy tightening by the Fed.

The prevalent cautious mood around the equity markets offered some support to the safe-haven greenback. Weaker US Treasury bond yields held back the USD bulls from placing fresh bets and offered some support to the GBP/USD pair, at least for the time being. The near-term bias, however, remains tilted in favour of bearish traders amid Brexit woes and expectations for a less hawkish Bank of England.

Investors remain concerned that the UK government's controversial Northern Ireland Protocol Bill could trigger a trade war with the European Union amid the cost-of-living crisis. Furthermore, recession fears could force the BoE to adopt a gradual approach toward raising interest rates and act as a headwind for the British pound.

Technical levels to watch

GBP/USD

Overview
Today last price 1.2017
Today Daily Change -0.0007
Today Daily Change % -0.06
Today daily open 1.2024
 
Trends
Daily SMA20 1.217
Daily SMA50 1.2353
Daily SMA100 1.274
Daily SMA200 1.3123
 
Levels
Previous Daily High 1.203
Previous Daily Low 1.1909
Previous Weekly High 1.2332
Previous Weekly Low 1.1976
Previous Monthly High 1.2617
Previous Monthly Low 1.1934
Daily Fibonacci 38.2% 1.1984
Daily Fibonacci 61.8% 1.1955
Daily Pivot Point S1 1.1945
Daily Pivot Point S2 1.1867
Daily Pivot Point S3 1.1824
Daily Pivot Point R1 1.2066
Daily Pivot Point R2 1.2108
Daily Pivot Point R3 1.2187

 

 

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