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GBPUSD rises and reaches session highs near 1.1400

  • The pound recovers 1.9% on the day and closes the week near 1.1400.
  • US unemployment and wage inflation data affect the dollar.
  • The pound has been spared post-BOE bearish pressure.

The GBP has continued to appreciate during the afternoon of Friday in the United States, driven by the general weakness of the dollar, reaching the maximum of the session at 1.1380.

The pair has shaken off the negative pressure of the previous day to stage a surprising 1.9% daily recovery, after bouncing from the lower 1.1100 range, to close the week a few points below 1.1400.

Unemployment in the US grows with the slowdown in wages

Despite the bright non-farm payrolls reading, US unemployment rate and wage inflation data have shown the first signs of easing in the US labor market, dampening expectations of a further aggressive tightening by the Federal Reserve and has punished the dollar.

Non-farm employment has risen above expectations in October, showing a reading of 261,000, beating the consensus of 200,000, while September’s reading has been revised to an increase of 315,000 from 264,000 previously estimated. However, the unemployment rate has risen to 3.7% from 3.5% in September, and hourly wages have slowed to 4.7% from 5%.

The British pound has trimmed previous losses after suffering one of its worst weekly results in recent months. The Bank of England’s moderate hike on Thursday, as BoE Chairman Bailey signaled a softer pace of tightening in coming months, after offering a 0.75% hike, triggered a sell-off in the pound.

Technical levels to watch

GBP/USD

Overview
last price today 1.1374
Today I change daily 0.0210
Today’s daily variation in % 1.88
Daily opening today 1.1164
Trends
daily SMA20 1,131
daily SMA50 1.1346
daily SMA100 1.1703
daily SMA200 1.2325
levels
Previous daily high 1.1422
Previous Daily Low 1.1152
Previous Weekly High 1.1646
Previous Weekly Low 1.1258
Previous Monthly High 1.1646
Previous Monthly Low 1.0924
Daily Fibonacci of 38.2%. 1.1255
Fibonacci 61.8% daily 1.1319
Daily Pivot Point S1 1,107
Daily Pivot Point S2 1.0975
Daily Pivot Point S3 1.0799
Daily Pivot Point R1 1,134
Daily Pivot Point R2 1.1517
Daily Pivot Point R3 1.1611

Source: Fx Street

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