- The British pound is gaining on the week, after four consecutive weeks in bearish numbers.
- Market sentiment is mixed, after a lousy US employment report.
- US nonfarm payrolls came in at 194,000, well below expectations.
The pair GBP/USD it rises thanks to a weaker than expected US employment report, advancing 0.12% and trading at 1.3637 during the US session at the time of writing this report. Early in the European session, the pound fell to a daily low of 1.3588 ahead of the non-farm payroll report.
Following the US employment report, market sentiment is a mixed bag, as evidenced by the major European and US stock indices, split between winners and losers. Meanwhile, the dollar is down 0.17%, as shown by the US dollar index (DXY), holding on to 94.05.
US 10-year yields are rising three and a half basis points to 1.60%, putting a cap on GBP / USD, despite a weaker dollar.
US Nonfarm Payrolls Hugely Disappointing Expectations
The US Bureau of Labor Statistics (BLS) released the Non-Farm Payrolls report for September. The 194,000 reading was worse than the 500,000 estimated by most analysts, complicating a possible bond phasing decision by the Federal Reserve to reduce pandemic-era stimulus.
At the latest monetary policy meeting, Fed Chairman Jerome Powell said it would take “a reasonably good employment report” for September to meet that test.
On the positive side of the report, the unemployment rate fell to 4.8% from 5.1%.
GBP / USD Price Forecast: Technical Outlook
On the daily chart, GBP / USD is approaching Tuesday’s highs of 1.3648. A daily break above the latter could pave the way for higher gains. The first resistance level would be 1.3700. A break out of that level would expose key essentials supply zones at the 50-day moving average (DMA) at 1.3750, followed by the confluence of the 100 and 200 DMA around 1.3845.
The Relative Strength Index (RSI) is at 48, slightly lateralized, but below the 50 midline, suggesting some downward pressure on the pair.
ADDITIONAL LEVELS
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
