British Pound (GBP) Price Outlook: Ranges Hold Ahead of US Payrolls Data
GBP price, news and analysis:
- GBP/USD continues to trade broadly sideways between support at 1.4092 and resistance at 1.4249.
- With little UK news to focus on, the next significant move in the pair will likely be in response to US non-farm payrolls data due 1330 BST (1230 GMT) Friday.
GBP/USD stable ahead of US jobs data
Like many other markets, GBP/USD is trading broadly sideways ahead of Friday’s US non-farm payrolls data. For now, the key levels to watch are 1.4092, the low recorded on May 27, and 1.4249, the high touched on June 1, with a break either way possible after the US employment report.
GBP/USD Price Chart, One-Hour Timeframe (May 18 – June 3, 2021)
Source: IG (You can click on it for a larger image)
After a period when the US employment report seemed to have declined in importance, it now looks to have regained its crown as the most important data release of the month and this time round the consensus forecast is a rise of 650,000 in payrolls. Attention will also be on the average earnings numbers as traders watch out for signs of wage inflation that might prompt the Federal Reserve to tighten US monetary policy sooner than currently expected.
Source: DailyFX calendar
Longer term, the bias in GBP/USD still seems to be to the downside, with 1.41 a likely target for the Sterling bears, followed by 1.40 if that support breaks.
--- Written by Martin Essex, Analyst
Feel free to contact me on Twitter @MartinSEssex
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.