The GBP/USD pair experienced an increase of more than 0.20% following the release of the US jobs report for June. The data showed that the economy added more jobs than anticipated, but revisions to April and May figures indicated a potential weakening in the labor market. Currently, the pair is trading at 1.2790, above its opening price, after reaching a low of 1.2752 earlier in the day.
In terms of technical analysis, the GBP/USD is approaching a key resistance level at 1.2660/75. Momentum appears to be bullish, as evidenced by the Relative Strength Index (RSI) which crossed above the 50-neutral line on June 2. This suggests that the path of least resistance for the pair is to the upside. If buyers manage to achieve a daily close above 1.2800, it could open the door for a challenge of the year-to-date high of 1.2894. Further upside potential can be seen if the pair surpasses this level, with resistance levels at 1.2900, 1.2995 (July 27, 2023, high), and ultimately 1.3000.
On the other hand, a bearish reversal would require the exchange rate to drop below the July 4 daily low of 1.2733. This could lead to a test of the support level at 1.2709 (April 8 high), followed by 1.2700. If selling pressure persists, the next level to watch would be the 50-day moving average (DMA) at 1.2673.
In addition to the GBP/USD pair, the table below shows the percentage change of the British Pound (GBP) against other major currencies. Today, the British Pound showed strength against the Canadian Dollar, while experiencing mixed performance against other currencies.
It’s important to note that the information provided contains forward-looking statements and should be used for informational purposes only. Investing in the financial markets carries risks, and individuals should conduct their own research before making any investment decisions. The views and opinions expressed in the article are those of the author and do not necessarily reflect those of FXStreet or its advertisers.
In conclusion, the GBP/USD pair is showing signs of bullish momentum as it approaches key resistance levels. Traders should pay close attention to the 1.2800 level for potential breakouts or reversals in the coming sessions.
