- The US Nonfarm Payrolls report showed the country added 265,000 jobs in September.
- Wall Street maintains intraday losses, but reduces bleeding.
- GBP/USD fails to bounce ahead of the weekly close, hinting at more pain to come.
Following the monthly US employment report, the US dollar rallied, pushing GBP/USD to an intraday low of 1.1089. According to the Bureau of Labor Statistics, the country added 265,000 new jobs in September, exceeding expectations, while the Unemployment Rate unexpectedly dropped to 3.5%. The strength of the sector cleared the way for the US Federal Reserve to continue raising rates at a rate of 75 basis points per meeting.
The dollar’s rally lost steam after the Wall Street open as stocks maintained pre-open losses without extending their declines. Some profit-taking ahead of the weekend has helped the major pairs bounce back, but that is not the case for GBP/USD, which is currently struggling to hold onto the 1.1100 threshold.
GBP/USD Technical Outlook
The GBP/USD pair has dropped for the third consecutive day and is not far from Monday’s weekly low of 1.1085. Short-term technical readings support a bearish continuation in the near term, especially if the pair breaks through the aforementioned weekly low. The next relevant support level is 1.1024, daily low of 30th September.
The chances of recovery are pretty nil, although a corrective rally could emerge if the pair rallies beyond the 1.1130 price zone.
Source: Fx Street
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