GBP/USD recovers after post-NFP decline and breaks back above 1.2600

  • The Pound has trimmed post-NFP lows and is virtually flat on the daily chart.
  • Non-Farm Payrolls data show that the US economy continues to create jobs at a good pace.
  • The fragile economic outlook and lower inflationary pressures weigh on the pound.

The Pound is recovering lost ground in Friday's US session after a major reversal, as good US employment data boosted the US Dollar. The pair, however, remains virtually flat in the weekly chat, having seen ups and downs in recent days.

US Nonfarm Payrolls rose by 303,000 in March, beating expectations for an increase of 200,000 to close out a stellar quarter for employment. Wage inflation has continued to rise, although the moderation seen in the annual rate, which has fallen to 4.1% from 4.3% the previous month, has allayed concerns about an aggressive stance from the Federal Reserve.

In the UK, weak data on services sector activity released this week adds to evidence of an uncertain economic outlook. Weak GDP and slowing price pressure fueled speculation that the BoE may anticipate the first rate cuts, which is weighing on the pound.

The technical picture remains bearish, with resistance at 1.2675 keeping buyers ahead of 1.2755. Support levels are 1.2575 and 1.2535.

GBP/USD

Overview
Latest price today 1.2635
Today Daily Change -0.0008
Today's daily variation -0.06
Today's daily opening 1.2643
Trends
daily SMA20 1.2691
50 daily SMA 1.2668
SMA100 daily 1.2665
SMA200 daily 1.2588
Levels
Previous daily high 1.2684
Previous daily low 1.2635
Previous weekly high 1.2668
Previous weekly low 1.2586
Previous Monthly High 1.2894
Previous monthly low 1.2575
Daily Fibonacci 38.2 1.2654
Fibonacci 61.8% daily 1.2665
Daily Pivot Point S1 1.2624
Daily Pivot Point S2 1.2606
Daily Pivot Point S3 1.2576
Daily Pivot Point R1 1.2672
Daily Pivot Point R2 1.2702
Daily Pivot Point R3 1,272

Source: Fx Street

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