GBP/USD bounces off 50-DMA support after US jobs data

The GBP/USD pair remained heavily offered through early NA session and refreshed session lows after US jobs data, albeit quickly rebounded thereafter.

According to the official US monthly jobs report, the US economy added 222K new jobs during the month of June, while previous month’s reading was also revised higher to 152K from 138K reported earlier. 

Although the headline NFP print was much higher than 179K expected, the disappointment, however, came from the unemployment rate, which ticked higher to 4.3% during the reported month, and subdued average hourly earnings growth, recording m-o-m growth of 0.2%. 

The disappointing wage growth data was seen taking to1l on the US Dollar and helped the pair to bounce off 50-day SMA support near the 1.2875 region. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "Technically, the pair is once again around the 23.6% retracement of its latest advance, not enough to confirm a longer term decline, but gaining downward potential in the short term, given that in the 4 hours chart, technical indicators have turned south, with the Momentum still around its 100 level and the RSI at 43, as the price is now below a flat 20 SMA."

"The immediate support comes at 1.2892, the weekly low, with a break below it targeting the 1.2850 price zone, ahead of the 1.2810 region. The immediate resistance now is 1.2960, followed by 1.3000 with selling interest aligned around this last probably preventing the pair from advancing further" she added.