The GBP/USD currency pair extended losses for a second straight day, falling 0.12% after a powerful U.S. nonfarm payrolls report that could refocus the Federal Reserve’s attention on tackling higher inflation, which has remained above target for five years. At the time of writing, the pair is trading at 1.3205.
High wages and higher yields keep sterling on the defensive
The U.S. Bureau of Labor Statistics (BLS) revealed that the economy added more than 178,000 jobs in March. jobs, which crushes forecasts of 60,000. Despite the positive reading, the February print was revised down again to -133k, but on a positive note the unemployment rate also fell to 4.3%, down from 4.4%.
Meanwhile, the US Dollar Index (DXY), which tracks the US currency against six other currencies, rose at least 0.12% to return above the 100.00 level amid growing speculation that the Fed will keep interest rates steady as the conflict in the Middle East drags on.
Recently, the US S&P Global Services PMI fell in March for the first time since January 23, falling from 51.7 in February to 49.8. Chris Williamson, chief business economist at S&P Global Market Intelligence, wrote: “PMI data shows the U.S. economy is buckling under the pressure of rising prices and growing uncertainty as the war in the Middle East deepens existing concerns about other policy decisions made in recent months, especially around tariffs.”
Williamson commented that the stagflationary environment of lack of growth and rising prices poses a challenge for policymakers as the S&P survey revealed a slowdown in employment.
Chicago Board of Trade (CBOT) data showed investors tempered dovish assumptions and expected the Fed to keep interest rates unchanged throughout the year. US treasury bond yields, especially 2-year bonds, increased after the NFP release.
GBP/USD Price Analysis: Technical Outlook
On the daily chart, the GBP/USD rate is 1.3205. The short-term bias is slightly bearish as the spot holds below the clustered uncomplicated moving averages (SMAs) surrounding 1.3550, confirming the loss of upside momentum after repeated failures along the descending resistance trendline that started at 1.3869. Price also moved away from the previous series of higher-supported closes along the ascending trendline from 1.3035, focusing on defending recent lows rather than extending gains. The FXS Fed Sentiment Index continues to rise, highlighting a stronger US dollar situation that makes GBP/USD gains risk-prone while the pair trades below the broken resistance zone.
Initial resistance appears at the psychological 1.3300 area, where earlier bounces have stalled before the downtrend line, followed by the 1.3400 area and then 1.3500, which coincides with the clustered moving averages that cap the upside. On the other hand, immediate support is located at 1.3200, just below the current price, with a break exposing 1.3100 and then an ascending trendline at 1.3035. A close of the day below this latter band would confirm a deeper bearish extension, while a bounce above 1.3400 would ease the immediate downside pressure and open a broader pullback towards 1.3500.
(The technical analysis for this story was written with the lend a hand of an AI tool.)
Sterling price this week
The table below shows the percentage change of the British Pound (GBP) against the major currencies traded this week. The British pound was strongest against the New Zealand dollar.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.19% | 0.45% | -0.37% | 0.43% | -0.39% | 0.98% | 0.40% | |
| EUR | 0.19% | 0.63% | -0.22% | 0.60% | -0.20% | 1.17% | 0.59% | |
| GBP | -0.45% | -0.63% | -0.80% | -0.02% | -0.83% | 0.54% | -0.07% | |
| JPY | 0.37% | 0.22% | 0.80% | 0.81% | 0.01% | 1.37% | 0.69% | |
| BOOR | -0.43% | -0.60% | 0.02% | -0.81% | -0.84% | 0.55% | -0.06% | |
| AUD | 0.39% | 0.20% | 0.83% | -0.01% | 0.84% | 1.38% | 0.75% | |
| NZD | -0.98% | -1.17% | -0.54% | -1.37% | -0.55% | -1.38% | -0.61% | |
| CHF | -0.40% | -0.59% | 0.07% | -0.69% | 0.06% | -0.75% | 0.61% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select British Pound from the left column and move along the horizontal line to US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
