The Great Britain Pound (GBP) inched higher against the U.S. Dollar (USD) on Monday, increasing the price of the GBPUSD pair to more than 1.3700, ahead of the release of U.S. Nonfarm Payrolls news. The technical bias remains bearish because the pair printed a lower high in the recent upside move.
As of this writing, the GBPUSD strengthens around 1.3791. While moving upward, the pair might face some resistance near the given below price levels.
1.3924 – the confluence of the major horizontal resistance and the upper trendline arm
1.4000 – the psychological number
1.4086 – the high of February 22, 2021
On the downside, the pair might find some support near the listed price levels.
1.3685 – the lower trendline arm
1.3573 – the key horizontal support
1.3500 – the low of January 12, 2021
U.S. Nonfarm Payrolls News
The U.S. Bureau of Labor Statistics anticipates releasing numbers for the Nonfarm Payrolls on Friday (April 02, 2021). According to economists, the Nonfarm Payrolls data might register a reading of 655K in March, as compared to the reading of 379K, in the month before.
The Nonfarm Payrolls stats reflect the number of non-agricultural jobs produced within the United States over the given time. The payroll data changes every month and can be extremely volatile because of direct relation to the Central Bank’s economic policy decisions. It is worth mentioning here that the figures for Nonfarm payrolls news are subject to subsequent reviews and can potentially create additional volatility in the forex market.
Generally speaking, a high reading is seen as optimistic for the U.S. Dollar and suggests a bearish market for the GBPUSD pair and vice versa.
Considering the macroeconomic outlook of the pair, selling the GBPUSD pair near 1.3800 might help to make some profits in the short to medium-term.