GBP/USD drops to 2-week near 1.3000 despite USD weakness

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  • Brexit headlines weigh on the British pound on Friday.
  • February nonfarm payroll data from the U.S. disappoint.
  • US Dollar Index remains on track to post its highest weekly close of 2019.

Although the dismal job market data from the U.S. put the greenback under pressure in the NA session on Friday, the GBP/USD pair struggled to gain traction on latest Brexit headlines and edged lower to touch its lowest level since February 22 at 1.3004. As of writing, the pair was trading at 1.3020, losing 0.5% on a daily basis.

According to the monthly report published by the U.S. Bureau of Labor Statistics, nonfarm employment in the U.S. rose by only 20,000 in February to miss the market expectation of 180,000. With the initial reaction to the data, the US Dollar Index slumped to a daily low of 97.25. However, the fact that the unemployment edged down to 3.8% and January’s NFP reading got revised up to 311,000 helped the greenback limit its losses. At the moment, the DXY is down 0.22% on the day at 97.40 and remains on track to post its highest weekly close of 2019.

On the other hand, several news outlets recently reported that the EU’s Chief Brexit Negotiator Michel Barnier will tell ambassadors that there was no progress in Brexit talks. Furthermore, the EU has reportedly made two new proposals to the U.K. on the backstop and they are still waiting for a response. Now markets are waiting for Barnier to make a statement on their offer to the UK.

Earlier in the day, British Prime Minister Theresa May’s spokeswoman told reporters that the PM had no plans to travel to Brussels over the weekend.

Technical levels to watch for

GBP/USD

Trends:
    Daily SMA20: 1.3055
    Daily SMA50: 1.2965
    Daily SMA100: 1.2883
    Daily SMA200: 1.2988
Levels:
    Previous Daily High: 1.3187
    Previous Daily Low: 1.3068
    Previous Weekly High: 1.3351
    Previous Weekly Low: 1.3051
    Previous Monthly High: 1.3351
    Previous Monthly Low: 1.2773
    Daily Fibonacci 38.2%: 1.3113
    Daily Fibonacci 61.8%: 1.3141
    Daily Pivot Point S1: 1.3032
    Daily Pivot Point S2: 1.2991
    Daily Pivot Point S3: 1.2914
    Daily Pivot Point R1: 1.3151
    Daily Pivot Point R2: 1.3228
    Daily Pivot Point R3: 1.3269

 

 

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