GBP/USD stuck in a range above 1.38 handle amid pre-NFP subdued trading action

Haresh Menghani FXStreet

• Today’s softer UK macro data capped an attempted up-move.
• Downside remains supported on the back of subdued USD demand.
• Investors await the release of key US monthly jobs report.

The GBP/USD pair quickly reversed an early European session bullish spike but has still managed to hold its neck above the 1.3800 handle.

The pair did get a minor boost and jumped to an intraday high level of 1.3831 amid a subdued US Dollar price-action. The up-move turned out to be short-lived and quickly ran into some offers in wake of weaker than expected UK macro releases - manufacturing/industrial production and trade balance data.

The pair, however, has managed to find some support near the 1.3800 handle and was seen consolidating overnight sharp rejection slide from the 1.3910-20 heavy supply zone.

Heading into today's key event risk - NFP release, traders also seemed reluctant to place aggressive bets, which further contributed to the pair's subdued/range-bound price action through the mid-European session.

Today's release of the NIESR UK GDP Estimate might influence the GBP price dynamics but the key focus would remain on the keenly watched US monthly jobs report, which might help determine the pair's next leg of directional move.

Technical levels to watch

Any further up-move beyond the 1.3830 level (session tops) is likely to confront resistance near the 1.3865 region, above which the pair is likely to make a fresh attempt towards conquering the 1.3900 handle.

On the flip side, the 1.3800-1.3795 region now seems to have emerged as an immediate support, which if broken could drag the pair towards 1.3765 horizontal support en-route the 1.3730 area.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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