The Great Britain Pound (GBP) extended downside movement against the US Dollar (USD) on Monday, dragging the price of GBPUSD to less than 1.4525 as bears gain strength despite weak nonfarm payrolls figure from the United States on Friday. The technical bias remains bearish in the long run because of a Lower Low in the recent downside move.
As of this writing, the pair is being traded around 1.4510. A support may be seen near 1.4451, the intraday low of Friday ahead of 1.4230-1.4250, the confluence of psychological number as well as trendline support area as demonstrated in our daily chart.
On the upside, the pair is likely to face a hurdle near 1.4591, the intraday high of Friday ahead of 1.4679, the swing high of the last major upside rally and then 1.5000, a key psychological level. The technical bias will remain bearish as long as the 1.4679 resistance area is intact.
The U.S. Bureau of Labor Statistics reported US non-farm employment in the month of January increased by 152k, much lower than 292k increase seen in December. Employment rate fell to 4.9 per cent. Job gains occurred in several industries, led by retail trade, food services and drinking places, health care, and manufacturing. The labor force participation rate, at 62.7 percent, was little changed. The employment-population ratio (59.6 percent) changed little over the month but was up by 0.3 percentage point since October. In January, average hourly earnings for all employees on private nonfarm.
Considering the overall technical and fundamental outlook, buying the pair around 1.4250 support area could be a good strategy in short to medium term if we get a valid bullish reversal candle near the aforementioned region.