GBPUSD – test of 100SMA at 1.3580 or rally towards 1.40 barrier could be likely post NFP scenarios
Cable showed no reaction on release of batch of weaker than expected UK data on Friday, remaining within previously established narrow consolidation range between 1.3878 and 1.3830, awaiting US jobs report.
Near-term structure remains weak after Thursday’s fall, as recovery attempts were so far capped by broken 55SMA but strong support, provided by base of rising daily cloud (1.3795) keeps the downside protected for now.
Negative daily techs continue to point lower, but direction signals are expected from US data today.
Strong numbers from US labor sector are needed to boost dollar and send pound through cloud base and recent low at 1.3711 towards rising 100SMA at 1.3580.
Bullish scenario on US jobs data miss would send pound higher, with break of 20SMA pivot at 1.3905, to expose psychological 1.40 barrier.
Res: 1.3830; 1.3845; 1.3890; 1.3905
Sup: 1.3780; 1.3765; 1.3711; 1.3660