The GBP/USD pair rose 0.25% to close to 1.3590 during Friday’s European trading session. The cable reflects strength as the pound sterling (GBP) outperforms its major currencies, barring the antipodes, amid a revival in risk.
At the time of writing, S&P 500 futures are 0.3% higher at almost 7,360, indicating mighty demand for riskier assets. The US Dollar Index (DXY), which tracks the value of the dollar against six major currencies, is 0.16% lower at near 98.10. DXY falls after Thursday’s rebound.
The attractiveness of risk-sensitive assets has revived as US President Donald Trump confirmed that the ceasefire with Iran remains intact despite the exchange of attacks near the Strait of Hormuz.
Meanwhile, investors are waiting for US non-farm payrolls (NFP) data for April, which will be released at 12:30 GMT. Investors will be closely monitoring the US NFP data for recent information on the Federal Reserve’s (Fed) monetary policy outlook.
The labor market report is expected to show that the economy has created 62,000 jobs. recent jobs, much less than 178 thousand in March.
GBP/USD technical analysis
At press time, GBP/USD was up at around 1.3590. The pair maintains a constructive bullish tone as it remains above the 20-day exponential moving average (EMA) at 1.3519 and the 50.0% Fibonacci retracement at 1.3512. The pair is approaching a key retracement band, with the 61.8% Fibonacci level at 1.3595 providing immediate resistance, while the average Relative Strength Index (RSI) near 58 indicates mighty but not overextended upside momentum.
On the upper end, a clear break above the 61.8% retracement at 1.3595 would open the door towards the 78.6% Fibonacci barrier at 1.3713, ahead of the latest cycle high at 1.3864. On the downside, there is initial support at the 20-day EMA at 1.3519, reinforced by the 50.0% retracement at 1.3512; a deeper pullback could then expose the 38.2% level at 1.3428 and the 23.6% retracement at 1.3325 before a broader bullish structure is challenged closer to the swing low at 1.3159.
(The technical analysis for this story was written with the aid of an AI tool.)
Economic indicator
Non-agricultural wages
The Nonfarm Payrolls publication presents the number of recent jobs created in the U.S. over the previous month across all nonfarm businesses; is published by US Bureau of Labor Statistics (BLS). Monthly payroll changes can be extremely volatile. This number is also subject to mighty reviews, which can also create volatility in the Forex market. Generally, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish, although previous months’ reviews and the unemployment rate are as essential as the headline data. The market reaction therefore depends on how the market evaluates all the data contained in the BLS report.
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