- GBPUSD challenges the key 1.1300 zone on Friday.
- The dollar continues to offer and allows the rebound of the Cable.
- US non-farm payrolls surprised to the upside in October.
The GBP recovers its balance and fosters the rebound of the GBP/USD up to the 1 zone.1300 on Friday.
GBP/USD strengthens on risk appetite
GBPUSD puts behind two losing sessions in a row and manages to advance to the 1.1300 area at the end of the week, where some initial resistance seems to have appeared.
Widespread risk appetite for space lent Crud additional strength on Friday and helped the pair recover some of Thursday’s BoE-induced selloff.
In fact, the dollar remains on the defensive even though the US economy created more jobs than expected in October (261,000), while the unemployment rate rose to 3.7%.
On the UK docket, the construction PMI improved to 53.2 in October (from 52.3), while BOE Chief Economist H.Pill suggested earlier in the session that markets should “re-anchor ” your expectations around the policy rate following the recent political/financial turmoil.
Technical levels
At the time of writing, the pair is gaining 0.82% at 1.1248 and a break of 1.1375 (55-day SMA) would open the door to 1.1645 (Oct 27th monthly high) and then 1.1690 ( 100-day SMA). On the other hand, the next support comes at 1.1142 (weekly low Nov 4), followed by 1.0923 (monthly low Oct 12) and finally 1.0356 (low Sep 26).
Source: Fx Street
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.jpg "Cesare Cremonini and Giorgia Cardinaletti, the first photo together on social media (with Valentino Rossi)")