The Great Britain Pound (GBP) slid down against the U.S. Dollar (USD) on Friday (June 04, 2021), decreasing the price of the GBPUSD to less than 1.4100, ahead of the release of U.S. Nonfarm Payroll news.
Technical Analysis
As of this writing, the GBPUSD floats around 1.4087. Should the price decrease further, the pair might find some support near the listed price levels.
Short Term Support
1.4036 – the low of May 14, 2021
1.4000 – the psychological number
1.3969 – the Fibonacci retracement (38.2%)
Image Source – MetaTrader4
On the upside, the pair might face some resistance near the given price levels.
Short Term Resistance
1.4186 – the upper trendline arm
1.4249 – the major horizontal resistance
1.4300 – the psychological level
U.S. Nonfarm Payroll News
The U.S. Bureau of Labor Statistics anticipates releasing figures amid the U.S. Nonfarm Payrolls Today (June 04, 2021). According to the consensus of FXStreet.com economists, the U.S. Nonfarm Payrolls news might register a reading of 664K in May, as compared to the reading of 266K, in the month before.
The U.S. NFP data reflects the numbers of vacant positions announced in the Non-agriculture sector of the United States over the given period. The NFP data changes each month and can be highly volatile. The direct impact of the economic policy decisions of the U.S. Central Bank on NFP data makes it such volatile. Also, NFP figures are subject to subsequent reviews that could create some additional volatility in the market. Generally speaking, a high reading for the U.S. Nonfarm Payroll is seen as positive for the U.S. Dollar and suggests a bearish trend for the GBPUSD pair and vice versa.
Conclusion
Given the macro-economic outlook of the pair, it may be a better option in the short term if the GBPUSD pair was bought around 1.4076 – the immediate horizontal support. Due to the volatile nature of the market, however, prices may change and lead to different outcomes.