Gbpusd Struggles Post Nfp

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Gbpusd Struggles Post Nfp

Gbp/Usd Struggles Below 1.2800 Post Nfp

GBP/USD plunged against the greenback after the release of May's NFP report from the BLS. According to the BLS, the job market remains steady and even surpasses the forecasts made by the experts.

After the NFP data, the USD received a boost and sent the GBP/USD towards the weekly lows near 1.2722. The GBP/USD is already down by 0.53% and trades with a mostly bearish bias in the short term.

Gbp/Usd Eyes 1.2700 Support

The technical analysis of GBP/USD shows that it failed to close above the resistance at 1.2800. As a result, the pair was dragged lower towards the weekly lows as it now eyes the 1.2700 support.

That's why it is safe to say that the short-term momentum now favors the sellers as even the RSI has dropped from 64 to around 52.46. With just a few more bearish candles, the RSI will turn below the 50 and enter into the bearish territory.

Now, the first support zone for the GBP/USD traders will be near the 1.2700 handle. If the GBP/USD closes under it, it will mean the next stop will be around 1.2680 - 1.2670.

Another scenario is a break above the 1.2740 - 1.2750, which means the focus of the GBP/USD traders will then shift towards the 1.2800.

If we look at the GBP/USD performance, the pair is down by -0.69% in the last 5 days. Similarly, the 1-month and the 6-month performance is +1.56% and +1.25%.

As for the GBP/USD's YTD price action, it is down by -0.06% which means it is mostly neutral to a little bearish. Now, the main focus will be how the Bank of England and the Federal Reserve will shape their interest rate policy.

If the BoE is the first bank to cut rates, it will mean the GBP/USD will likely turn lower towards the 1.2500, 1.2400, and even the 1.2200 handle. Conversely, a first move by the US Fed will send the GBP/USD towards the 1.2900, 1.3000, and 1.3200 handles.

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