GBP/USD remains well-offered at 1.2350 after NFP

Although the selling pressure around the British Pound seems to have stalled, the GBP/USD pair failed to register any meaningful recovery after disappointing headline NFP print.

According to the monthly jobs report released just a while ago, the US economy added 156K new jobs in September, which was short of consensus expecting 175K addition, and the unemployment rate ticked higher to 5.0% as compared to 4.9% recorded in August. Meanwhile, average hourly earnings were bang in-line with market expectations and came-in to show a monthly rise of 0.2%. 

Despite of the disappointing headline NFP print and rise in unemployment rate, market participants remained convinced that the Fed would go ahead and raise interest rates before the end of this year and thus remained skeptic of initiating fresh USD bearish bets, which eventually failed to benefit the GBP/USD major and the pair remained well offered around mid-1.2300s.

Technical outlook

As Carol Harmer, Founder at charmertradingacademy.com, writes, " if we struggle at the 1.2430 level we would need then to re-asses the corrective phase and realise that possibly we go down to target area of 1.2050 once again...Looking at the longer term charts and ignoring some of last nights action...we see that 1.15 is another longer term projected target and we cannot forget the lows of 1.03 as Iv said taken form the 1986 lows...Personally I am going to stay out of GBP over the next few sessions and let it settle down a bit unless a bounce really does hit some good levels on the topside...then it would just be rude not to sell it...."