**Original article credit: InvestingLive.com**
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## GBP/USD Technical Analysis: Traders Await the US Labour Market Data
The GBP/USD currency pair is in sharp focus as the foreign exchange market gears up for the upcoming United States labour market data. This event is anticipated to be a major catalyst for price movement, as recent sessions have seen the GBP/USD pair navigating a phase characterized by volatility, fluctuating economic outlooks, and technical complexities. In this article, we will conduct an in-depth technical analysis of the GBP/USD pair, taking into account the prevailing fundamentals, emerging chart patterns, support and resistance zones, and the possible scenarios that traders should consider as key data is released.
### Fundamental Overview
The GBP/USD pair, often referred to as “Cable,” derives its movements from the intricate balance of fundamental forces in both the United Kingdom and the United States.
#### Key Fundamental Themes
– **US Labour Market Data – Central Focus**
– The market is highly attentive to the US Non-Farm Payrolls (NFP) and wage growth reports, as they offer insight into the Federal Reserve’s next moves on interest rates.
– A strong jobs report is likely to reinforce expectations of tighter monetary policy, possibly boosting the US dollar, while weaker data could provide relief to GBP/USD bulls.
– **Bank of England’s Policy Path**
– The Bank of England remains cautious, with inflation still elevated above target and growth concerns persisting.
– UK economic releases, including GDP and inflation data, remain influential, but the spotlight this week is firmly on the US.
– **Recent Market Sentiment**
– Sentiment has been tugged between global risk aversion and periods of US dollar profit-taking.
– Sluggish economic growth figures from the UK weighed on the pound earlier in the month, but some stabilization has followed as market participants square positions ahead of major data.
### GBP/USD Technical Analysis
Examining technical factors is essential for understanding how the GBP/USD price might respond in the short and medium term.
#### Current Price Action
– GBP/USD recently tested the 1.2600 support region after failing to establish a sustained rally above 1.2800.
– The pair has entered a consolidative phase, oscillating within a range as traders await stronger directional cues.
#### Key Support and Resistance Levels
– **Immediate Support:** 1.2600 zone
– This level is underpinned by recent price lows and serves as a psychological floor for traders.
– **Major Support:** 1.2540
– A decisive breakdown below this area could trigger a sharper selloff, targeting the 1.2450-1.2470 zone.
– **Immediate Resistance:** 1.2740 – 1.2760
– Multiple failed attempts to break above this area suggest it is a formidable barrier for GBP/USD bulls.
– **Key Resistance:** 1.2800 and 1.2840
– A convincing close above these levels would signal a resumption of upward momentum and potentially open the path toward the 1.2900 handle.
#### Technical Indicators
– **50-period Moving Average (MA):**
– The pair is hovering just below its short-term 50-period MA (on the 4-hour chart), indicating that immediate momentum remains skewed to the downside.
– **200-period Moving Average (MA):**
– The 200-period MA (daily timeframe) lies above the current price, thereby capping potential rallies and reinforcing overhead resistance.
– **Relative Strength Index (RSI):**
– Currently positioned in neutral territory (around 50), the RSI does not indicate an overbought or oversold condition.
– A move below 40 would tilt the bias bearish, potentially signaling further downside.
– **Moving Average Convergence Divergence (MACD):**
– The MACD histogram is flat, reflecting recent sideways trading and a lack of strong directional momentum.
#### Chart
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