GBPUSD remains steady in European trading on Friday and attempts above 1.22 mark, in extension of Thursday’s rise, sparked by BOE’s decision, which markets saw as a hawkish hold.
Better than expected UK Oct Services PMI (although the sector contracts for the fourth consecutive month) added support to sterling as markets await release of key US labor report.
Non-farm payrolls are expected to rise by 180K in Oct compared to 336K new jobs added in Sep, average earning forecasted to tick up (Oct 0.3% m/m vs Sep 0.2%) and unemployment to stay unchanged at 3.8%.
Any stronger divergence of NFP numbers from forecasts would generate direction signal, with pound seen benefiting from weaker numbers, while jump above consensus would put the pair under pressure.
Initial support lays at 1.2175 (session low / 20DMA), followed by Thursday’s low (1.2152) and pivotal trendline support (1.2090) loss of which will be bearish.
Upper triangle boundary offers initial resistance at 1.2236, ahead of Oct 24 spike high at 1.2288 and Oct 11 top / falling 55DMA at 1.2337, violation of which to bring bulls fully in play.
Res: 1.2236; 1.2288; 1.2337; 1.2410.
Sup: 1.2175; 1.2152; 1.2080; 1.2069.
