GBPUSD looks firm and is approaching 1.1300

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  • 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.

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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%.

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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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