- The GBP/USD pair accelerates its recent gains and will end the week near 1.2400.
- The pound is on track to record its best day of trading since March.
- The lack of US NFP data is causing a general decline in the Dollar, which favors higher risk assets.
The pair GBP/USD andIt is rising towards the 1.2400 area to limit a week of trading in which the pair remained around the averages.
After the US Non-Farm Payrolls (NFP) disappointed expectations, the British Pound (GBP) rose 1.6% from Friday’s opening bids near 1.2190, and the GBP/USD pair rose almost 2.5 % from weekly lows at 1.2095.
US NFP figures fell short of expectations and recorded their worst reading in almost three years. The US added 150,000 new jobs in October, below the market forecast of 180,000 and well below the September print of 297,000, which was revised down from the initial print of 336,000.
The failure of the US employment figures is causing the US Dollar (USD) to decline in the broader market, as investors move towards risk assets, while the US jobs data. , counterintuitively, inspire investors to exit safe havens. Weakening US data will give the Federal Reserve (Fed) reason to pause interest rates, as investors look for signs that the Fed will begin to accelerate the timetable for potential rate cuts.
GBP/USD Technical Outlook
The NFP-driven rally in the British Pound has GBP/USD breaking through the 50-day SMA, heading directly towards the 1.2400 zone and preparing to challenge the 200-day SMA which is currently moving sideways from 1.2435.
The GBP/USD pair has recently ranged between 1.2300 and 1.2100, and a bearish pullback would take the pair back to multi-month lows towards the 1.2000 area.
GBP/USD Daily Chart
GBP/USD Technical Levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
