Strong US jobs data deflate pound, but headwinds from 1.20 support persist
Cable lost traction after upbeat US jobs data and returned below 1.20 handle, erasing the good part of Thursday’s recovery.
Fresh weakness generates initial signal that bounce was short-lived, as technical studies on daily chart are bearish and the latest US data added to negative fundamentals for pound, as better than expected June figures confirm the strength of the labor market, supporting Fed’s idea of another aggressive hike this month that would further inflate the greenback.
Bears look for eventual close below pivotal supports at 1.2080/00 (Fibo 76.4% of psychological 1.20 support after two attempts failed that would confirm bearish stance and risk deeper drop.
Res: 1.2055; 1.2084; 1.2104; 1.2152
Sup: 1.1919; 1.1875; 1.1822; 1.1751