Failing to Break the $1.2800 Wall, GBP/USD Plunges NFP Figure!


The chart of the GBP/USD currency pair in the New York session last Friday saw a price plunge of around 100 pips following the market's reaction to the published data.

In focus, the latest United States (US) NFP employment data report has had a significant strengthening impact on the US dollar.

This situation has also triggered expectations that the Federal Reserve (Fed) is likely to delay actions to lower their interest rates in September.

The pound is at risk with bearish signals by the central bank of England (BOE) before. Thus, this week's UK employment and economic growth data will be watched.

If observed on the GBP/USD chart last week, the price has been testing the 1.28000 resistance zone since the beginning of the week but still failed to break through it.

On Friday, the price tested the zone again before plunging as the NFP data reacted in the New York session.

Crossing the Moving Average 50 (MA50) line on the 1-hour time frame on the GBP/USD chart which signals a bearish movement, the price recorded a daily decline of around 100 pips.

The decline almost reached the level of 1.27000 which is a support zone for the price, it is believed that the price will go to that area at the beginning of this week.

Horizontal price movement in the Asian session this morning (Monday) around 1.27200 with the expected decline to continue with the US dollar's strengthening momentum maintained.

The next focus for price declines is at the 1.26000 zone as well as a recent 4-week low.

But if the price manages to make a surge again, the MA50 barrier needs to be overcome before returning to signal to resume the bullish movement again.

The target for the price is still at the 1.28000 resistance zone that was tested over the past week and is constraining the price's advance to higher levels.