- The British Pound crawled back up above the 1.2935 resistance against the US Dollar.
- The GBPUSD pair is currently facing a monster resistance near the 1.2950-60 area, which acted as a hurdle on many occasions.
- The US nonfarm payrolls for April 2017 released by the US Department of Labor posted a rise of 211K, more than the forecast of 185K.
GBPUSD Technical Analysis
The British Pound gained traction recently and moved above the 1.2910 and 1.2935 resistance levels against the US Dollar. The GBPUSD pair traded close to the 1.2960 resistance where it faced offers.
The stated 1.2950-60 resistance is a major hurdle for Pound buyers, as it acted as a resistance on many occasions.
The pair is currently correcting lower and may test the 23.6% Fib retracement level of the last wave from the 1.2829 low to 1.2956 high.
GBPUSD Hourly Chart
There is a major connecting bullish trend line waiting on the downside at 1.2926 on the hourly chart to act as a support.
A break below the trend line support at 1.2925 won’t be good, and may prompt a decline towards the 50% Fib retracement level of the last wave from the 1.2829 low to 1.2956 high at 1.2892.
In short, we may soon witness a break above 1.2960 or below 1.2925 in the short term.
US Nonfarm Payrolls
Today in the US, the nonfarm payrolls for April 2017 was released by the US Department of Labor. The market was expecting a better reading of 185K, compared with the last 98K.
The actual result was better than the forecast, as the nonfarm payrolls increased 211K, well above the forecast of 185K. There was a downside revision for the last reading from 98K to 79K. So, the overall increase was a lot higher compared with the market expectation. The US Unemployment Rate also posted an impressive reading, as there was a decline from the last rate of 4.5% to 4.4% in April 2017, whereas the market was expecting an increase to 4.6%.
The report mentioned that:
Among the major worker groups, the unemployment rate for adult men declined to 4.0 percent in April. The jobless rates for adult women (4.1 percent), teenagers (14.7 percent), Whites (3.8 percent), Blacks (7.9 percent), Asians (3.2 percent), and Hispanics (5.2 percent) showed little change.
Overall, it won’t be easy for the GBPUSD pair to break the 1.2960 resistance in the near term.