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GBP/USD sinks below 20-day SMA ahead of US NFPs

  • GBP/USD pulled back towards the 1.2670 zone, below the 20-day SMA.
  • Core CPI for July rose to 3.3%, matching expectations.
  • Focus is on Friday’s NFP, which is expected to have slowed to 170,000.

On Thursday, the pair GBP/USD lost ground as the dollar traded strongly against most of its rivals following the release of Core Personal Consumption Expenditure (PCE) figures for July. Pound losses are limited by Bank of England tightening expectations, which remain elevated.

Core PCE rose in July and jobless claims slowed at the end of August

Core CPI for July stood at 3.3%, up from 3% previously and matching consensus. In addition, in the US it was reported that jobless claims for the week ending August 25 slowed to 228,000, compared to 235,000 expected and 232,000 previously, suggesting some resistance from the labor market after the US reported weak jobs numbers on Tuesday.

All eyes are now on the US August Non-Farm Payrolls (NFP) report to be released on Friday, which is likely to cause volatility in the markets as it is the ultimate gauge of the health of the American job market. As the Federal Reserve (Fed) anticipates a cooling off in the job market, its result will help investors place bets on upcoming decisions.

On the GBP side, no relevant data was published, but its losses are limited by expectations of a tightening of the Bank of England (BoE), and the markets continue betting on a terminal rate between 5.75%-6% for this cycle. .

GBP/USD Levels to Watch

On the daily chart, GBP/USD maintains a neutral technical outlook as indicators send mixed signals. The Relative Strength Index (RSI) is sloping negatively into bullish territory, hinting at a possible momentum shift, while the Moving Average Convergence (MACD) shows shorter red bars. Furthermore, the pair is below the 20-day SMA but above the 100-day and 200-day SMAs, indicating favorable positioning for bulls in the bigger picture.

Support levels: 1.2645 (100-day SMA), 1.2600, 1.2550.

Resistance levels: 1.2700 (20-day SMA), 1.2730, 1.2750.

GBP/USD Daily Chart


Last price today 1.2666
Today Daily Variation -0.0055
today’s daily change -0.43
today’s daily opening 1.2721
daily SMA20 1.2702
daily SMA50 1.2781
daily SMA100 1.2647
daily SMA200 1.2411
previous daily high 1.2746
previous daily low 1.2619
Previous Weekly High 1.28
previous weekly low 1.2548
Previous Monthly High 1.3142
Previous monthly minimum 1.2659
Fibonacci daily 38.2 1.2698
Fibonacci 61.8% daily 1.2668
Daily Pivot Point S1 1.2645
Daily Pivot Point S2 1.2568
Daily Pivot Point S3 1.2517
Daily Pivot Point R1 1.2772
Daily Pivot Point R2 1.2823
Daily Pivot Point R3 1.29

Source: Fx Street

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