GBPUSD Poised for Downside Move amid NFP News

The Great Britain Pound (GBP) inched lower against the US Dollar (USD) on Monday, decreasing the price of GBPUSD to less than 1.3550 following some key economic events. The technical bias remains bullish because of a higher low in the recent downside move.

GBP/USD Technical Analysis

As of this writing, the pair is being traded near 1.3548. A hurdle may be noted around 1.3655 (a major horizontal resistance zone) ahead of 1.3900(a psychological level) and then 1.3943 (another major resistance area).

On the downside, a support can be noted around 1.3000 (a psychological number) ahead of 1.2634 (the low of the last major downside move) and then 1.2500 (the confluence of horizontal support as well as psychological number) as demonstrated in the given above chart. The technical bias shall remain bullish as long as the 1.2700 support area is intact.

US Nonfarm Payrolls

Non-farm payrolls increased by 148,000 jobs last month, the Labor Department said today.

Retail payrolls fell by 20,300 in December, the largest drop since March, despite a strong Christmas shopping season.

Employment data for October and November data were also revised to show 9,000 fewer jobs created than previously reported.

Job growth surged in October and November after being held back in September by back-to-back hurricanes, which destroyed infrastructure and homes and temporarily dislocated some workers in Texas and Florida.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.

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Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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