- GBP/USD is accelerating recent gains and should be close to 1.2400 by the end of the week.
- Sterling is on track for its best trading day since March.
- Missing US NFP data sends dollar roughly lower, giving riskier assets a hand.
GBP/USD climbs to the 1.2400 handle to cap off a trading week where the pair mostly moved around the averages.
After US Nonfarm Payrolls (NFP) came in well below expectations, the pound sterling (GBP) rose 1.6% from Friday’s opening bids near 1.2190 and GPB/USD rose nearly 2.5% from weekly lows of 1, 2095.
OUR NFP data fell short of expectations and made the worst headline in nearly three years. The U.S. added 150,000 new jobs in October, missing the market forecast of 180,000 and coming in well below September’s print of 297,000, which was revised downward from an initial print of 336,000.
The lack of US jobs NFP sends the US dollar (USD) lower in the broader market as investors spend on risk assets with sour US jobs data, which counterintuitively inspires investors to exit safe havens. Softening US data will give the Federal Reserve (Fed) reason to hold interest rates as investors look for signs that Fed will begin to accelerate the plan for possible rate cuts.
GBP/USD Technical Outlook
The pound’s rise on the NFP sees GBP/USD climb right over the 50-day simple moving average (SMA), targeting the 1.2400 handle right in front of it and ready to challenge the 200-day SMA, which is currently turning aside from 1.2435.
The GBP/USD recently it has fluctuated between 1.2300 and 1.2100 and a bearish decline will see the pair fall back to multi-month lows towards the main handle of 1.2000.