GBP/USD advances to approximately 1.3360 during the early European session on Friday. The major pair continues to be constrained beneath the significant 100-day moving average. The first upside barrier emerges at 1.3410; the initial support level is seen at 1.3300. The GBP/USD pair is positioned in positive territory, hovering around 1.3360 in the early European session on Friday. The British Pound gathers strength against the US Dollar on a weaker-than-expected US Nonfarm Payrolls report.
Signs of a cooling US labour market have led financial markets to reduce expectations for a near-term interest rate hike from the US Federal Reserve, putting downward pressure on the Greenback and providing support for the major pair. Financial markets are currently estimating a probability of approximately 52% for a US rate hike by September, a decrease from the previous 66% prior to the release of the jobs data, as indicated by the CME FedWatch tool. Traders will pay keen attention to the unfolding events in UK politics following Keir Starmer’s resignation last week.
Analysts indicated that Andy Burnham’s dedication to fiscal discipline provides immediate backing; however, markets will be vigilant regarding upcoming budgets for indications that fiscal regulations may be loosened to accommodate increased public expenditure. In the daily chart, GBP/USD is positioned above the Bollinger middle band, indicating a modestly supported tone, while it is constrained by the 100-day simple moving average. The Relative Strength Index at approximately 54 indicates a mildly positive momentum that is not overextended.
On the topside, initial resistance is situated at the 100-day SMA near 1.3410, and a daily close above this threshold would pave the way toward the upper Bollinger band around 1.3468. On the downside, immediate support aligns with the Bollinger middle band at 1.3300, ahead of the lower band near 1.3132, where a deeper pullback could attract dip-buying interest within the broader range.