GBP/USD clings to gains near 1.30 mark post-US NFP

• GBP/USD gained traction for the fourth consecutive session on Friday.
• Collapsing US bond yields weighed on the USD and remained supportive.
• The USD bulls failed to gain any respite from stronger headline NFP print.

The GBP/USD pair held on to its intraday gains near 2-1/2 week tops – around the key 1.30 psychological mark – and had a rather muted reaction to the US jobs data.

The pair added to this week’s positive move and continued gaining traction for the fourth consecutive session on Friday amid the prevailing strong bearish sentiment surrounding the US dollar, which aggravated further in the wake of a plunge in the US Treasury bond yields.

Against the backdrop of the coronavirus-led selloff across the global equity markets, the US bond yields were further pressurized by the fact that market participants have started pricing in prospects for another 50 bps Fed rate cut on March 18.

The USD bulls failed to gain any respite from the latest US monthly jobs report, which came in to show that the economy added 273K new jobs in February as compared to the previous month’s upwardly revised reading of 273K and surpassed even the most optimistic estimates.

On the other hand, the British pound remained supported by diminishing odds of a Bank of England interest rate cut and absent negative Brexit-related headlines.

Technical levels to watch