GBP/USD: Traders await US employment data amid Brexit jitter


  • GBP/USD trades a shade lower than 1.3100 ahead of European open on Friday.
  • The pair declined to the month’s low after pessimism surrounding Brexit and USD strength took their toll on Thursday.
  • While 1.3090 and 1.3030 can offer immediate support to the pair, 1.3185 acts as strong upside resistance.

GBP/USD seesaws near 1.3100 before London open on Friday. The pair recently dropped after lack of Brexit progress and disappointments from the ECB pushed markets toward the US Dollar. While on-going Brexit saga can continue affecting pair moves, the US jobs report for February month can also play its part to entertain traders.

Thursday couldn’t please Cable buyers as various news conveyed the EU-UK difference on Irish backstop delivering no Brexit deal and fewer chances of having one before next week’s British parliament voting on the UK PM Theresa May’s second referendum.

Sellers gained control after the European Central Bank (ECB) disappointed global market with its growth and inflation forecast cut joining hands with a change in forward guidance and new TLTRO.

Latest developments on the Brexit suggest the UK PM is likely pushing the EU leaders to accept her Irish backstop plan. However, the EU has already given time till Friday end to the British policymakers to come up with something new for Irish backstop to regain the region’s confidence.

In case of the February month US jobs report, the headline nonfarm payrolls (NFP) are likely to have softened to 180K from 304K while the average hourly earnings (YoY) might have increased to 3.3% versus 3.2% earlier. Also, the unemployment rate bears the consensus to test 3.9% against 4.0% prior.

GBP/USD Technical Analysis

1.3090 is likely immediate support for the GBP/USD pair, a break of which can further drag it to 1.3030 and then to 200-day simple moving average (SMA) figure of 1.2990.

On the upside, the pair needs to overcome the 1.3185 support-turned-resistance to revisit 1.3260 and 1.3310 resistances.

Share: Feed news

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


Recommended content

Editors’ Picks

Australian Dollar appreciates despite stronger US Dollar, PMI awaited

Australian Dollar appreciates despite stronger US Dollar, PMI awaited

The Australian Dollar (AUD) continues to strengthen against the US Dollar (USD) following the release of mixed Judo Bank Purchasing Managers' Index (PMI) data from Australia on Friday. The AUD also benefits from a hawkish outlook by the Reserve Bank of Australia (RBA) regarding future interest rate decisions. 

AUD/USD News
Japanese Yen remains on the front foot against USD, bulls seem non-committed

Japanese Yen remains on the front foot against USD, bulls seem non-committed

The Japanese Yen (JPY) attracts some buyers for the second straight day on Friday amid reviving bets for more interest rate hikes by the Bank of Japan (BoJ), though it lacks any follow-through.

USD/JPY News
Gold advances to near two-week high, eyes $2,700 on geopolitical tensions

Gold advances to near two-week high, eyes $2,700 on geopolitical tensions

Gold price (XAU/USD) prolongs its uptrend for the fifth consecutive day on Friday and climbs to a nearly two-week top, around the $2,690-2,691 area during the Asian session. Intensifying Russia-Ukraine tensions force investors to take refuge in traditional safe-haven assets and turn out to be a key factor underpinning the precious metal.

Gold News
Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally

Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally

Ethereum (ETH) is trading near $3,350, experiencing an 10% increase on Thursday. This price surge is attributed to strong bullish sentiment among derivatives traders, driving its open interest above $20 billion for the first time. 

Read more
A new horizon: The economic outlook in a new leadership and policy era

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.

Read more
Best Forex Brokers with Low Spreads

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.

Read More

Forex MAJORS

Cryptocurrencies

Signatures