GBP/USD – NFP in Focus

GBP/USD: 1.2900 tested on resurgent USD demand, NFP in focus

Broad based US dollar demand re-emerged in the Asian trades this Friday, knocking-off GBP/USD back to 1.29 handle.

The greenback staged a minor-recovery on reports of the US House of Representatives having approved a bill on Thursday to repeal major parts of Obamacare.

Moreover, higher treasury yields also remain supportive of the renewed USD strength, as investors brace for the highly-influential US payrolls data due later in the day.

However, the spot manages to hold onto the 1.29 handle, as the recent series of upbeat UK manufacturing, construction and services PMI reports point to a stronger growth outlook and hence, keep the pound underpinned.

Looking ahead, in absence of economic data from the UK docket, all eyes will remain on the US labor market report  due later in the American session, with +200k job additions expected in April.

GBP/USD Levels to consider            

A break above 1.2927/33 (daily top/ previous high) could lift the pair above 1.2955 (May 1 high), beyond which a test of 1.2970 (7-month tops) is imminent. Conversely, a break below 1.2861 (May 3 & 2 lows), leading to a subsequent break below 1.2834/29 (Apr 27 & May 4 low) is likely to drag the pair towards testing its next support near 1.2800 (key support).