GBPUSD is higher for the fourth consecutive session and keeps the gains despite better than expected NFP data showing that companies are hiring despite the coronavirus crisis. The United States Nonfarm Payrolls came in at 273K, almost 100K more than the forecasts of 175K in February. The U.S. Unemployment Rate reported at 3.5% below the expectations of 3.6%, while the Labor Force Participation Rate was unchanged at 63.4%. The United States Average Weekly Hours increased by 34.4, beating the forecasts of 34.3.
GBPUSD on the news just gave up 10 pips and as of writing the pair is 0.35% higher at 1.2992.
GBPUSD managed to rebound earlier this week from four month lows after the Fed cut the interest rates by 50 basis points in an emergency move to offset theee coronavirusss impact on the economy. The technical outlook is positive for the pair but a failure today to close above the 50-day moving average might be the start of a correction.
On the upside, resistance seen at 1.3026 the daily top. If the pair breaks above, the next resistance level is at 1.3063 the high from February 14th. More selling pressure might emerge at 1.3104 high from January 30th.
On the flip side, initial support for the pair stands at 1.2947 the daily low. Next support level for GBPUSD pair will be met at 1.2873 the low from yesterday’s trading session. More bids might emerge at 1.2767 the low from March 4th.