GBP/USD Climbs Above 1.35 After Weak U.S. Jobs Report.
GBP/USD rises past 1.3500 following weak U.S. jobs report.
FUNDAMENTAL OVERVIEW:
GBP/USD gained bullish momentum on Friday, climbing above 1.3500 during the U.S. session and trading 0.6% higher at 1.3528 at press time. The pair’s rally was driven by renewed weakness in the U.S. Dollar following disappointing labor market data.
The U.S. Bureau of Labor Statistics reported that Nonfarm Payrolls rose just 22,000 in August, well below expectations of 75,000. Meanwhile, the unemployment rate ticked up to 4.3% from 4.2%, in line with forecasts.
The soft jobs report weighed heavily on U.S. yields, with the 10-year Treasury dropping 2% to below 4.1%, while the USD Index slid to its lowest level since late July near 97.50.
Market pricing, as reflected in the CME FedWatch Tool, now shows about a 75% chance of 25 bps rate cuts at both the September and October Fed meetings, reinforcing expectations of imminent policy easing.
GBP/USD TECHNICAL ANALYSIS CHART:
Technical Overview:
GBP/USD is trading within an up channel.
GBP/USD is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Bullish Zone, while the Stochastic oscillator suggests Positive trend.
Immediate Resistance level: 1.3547
Immediate support level: 1.3416
HOW TO TRADE GBP/USD
GBP/USD initially attempted to push higher but faced rejection, sliding into its support zone. Although the pair staged a mild rebound, the recovery lacked momentum, leading to consolidation. Currently, GBP/USD has broken above resistance with a sharp move, and if it holds above this level, further upside potential remains.