GBP/USD faces stiff resistance near 1.3140, NFP in spotlight

GBP/USD trades around a flat-line as we progress towards the European open, having failed several attempts to take-out strong resistance placed near 1.3140 levels.

GBP/USD awaits US payrolls

Currently, GBP/USD trades 0.15% higher at 1.3129, bouncing-off good support located near 1.3120. The cable is seen struggling hard to break higher from the consolidative mode witnessed almost through the Asian session, with focus now shifting towards the crucial US employment data for next direction, in absence of relevant economic releases from the UK docket today.

The GBP/USD’s recovery appears to lack momentum as BOE’s latest easing measures continue to weigh on investors’ minds. BOE on Thursday delivered a 25bps rate cut, as was widely expected, and expanded its quantitative-easing program by £70 billion.

All eyes now remain on the US labour market report, with markets expecting a 180,000 gain in jobs and a slight fall in the unemployment rate, from 4.9% to 4.8%.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3201/07 (20 & 10-DMA), above which 1.3271 (daily R1) would be tested. On the flip side, support is seen at 1.3102 (post-BOE low) below that at 1.3070 (July 27 low).