Sterling has succumbed to data and Fed-related dollar strength. To 1.40 or 1.42? Nonfarm Payrolls and also worries about the Delta variant are set to move the GBP/USD pair. What’s more, Friday’s four-hour chart is showing that cable is at crossroads, Yohay Elam, an Analyst at FXStreet, briefs.
See – Nonfarm Payrolls Preview: Forecasts from 10 major banks for May jobs report
GBP/USD stands at crossroads
“Mounting evidence of an increase in prices seems to be reaching Federal Reserve officials, who could begin a discussion about printing fewer dollars soon. New York Fed President John Williams said that now is not the time to taper bond buys, but perhaps a discussion is warranted. The bank’s baby steps toward tightening are causing tremors in markets.”
“Nonfarm Payrolls are projected to show an increase of 664,000 jobs in May, but a wide variety of estimates, mixed leading indicators, and revisions could cause a choppy reaction. A bounce in response to ‘as expected’ figures could be the outcome for EUR/USD, but for the pound, there is additional downside pressure coming from virus variant fears.”
“Some support awaits at the daily low of 1.4080, followed by 1.4050 and the all-important 1.40 level, which is a clear separator of ranges.”
“Weak resistance is at 1.4130, the daily high, followed by 1.4170, and then 1.42, which was the high point before the drop.”
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