- The pound rebounds further, encountering resistance at the 1.4200 area.
- The pound also faces resistance against the euro and losses of momentum.
The GBP/USD it continued to rise during the American session and peaked at 1.4200. Like Thursday, it failed to break through the 1.4200 area and pulled back. The pullback found support at 1.4165 and the pair is about to end the week flat around 1.4160 / 70.
The pound rebounded sharply after falling before the NFP to 1.4082, the lowest level in nearly three weeks. From lows, it bounced higher, driven by the falling US dollar after the US jobs report disappointed expectations.
Also, the pound lost some momentum after the EUR / GBP broke out of lows and rose again above a key support level. A close clearly below 0.8560 / 70 could trigger further losses on the cross, adding strength to the pound.
GBP / USD technical outlook
The pound is about to end the week virtually unchanged against the US dollar after failing to sustain above 1.4200 while at the same time rebounding sharply below 1.4100. Yohay Elam, an analyst at FXStreet, notes that the daily chart in GBP / USD still points to an uptrend, “at least as long as the cable remains above the 1.4010 line which is a clear range separator. Meanwhile, momentum remains to the upside and the currency pair is trading well above the 50-day, 100-day and 200-day simple moving averages, a bullish sign. “
On the downside, Elam notes that soft support awaits at 1.4050, “before the critical support at 1.4010 mentioned above. Below, 1.3980, 1.3930 and 1.3850 come into play ”.
Technical levels
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