GBP/USD Pauses Ahead of US NFP Release Amid Cautious Market Sentiment
The GBP/USD pair has been steadily gaining ground over the past two days, but its momentum is waning as traders await the release of the US Nonfarm Payrolls (NFP) data. The USD has been edging higher due to some repositioning ahead of the key economic indicator, capping spot prices and limiting the GBP/USD's upside potential.
The technical setup for the pair remains bullish, with a mild bias above the 200-period Simple Moving Average (SMA) on the 4-hour chart. The Relative Strength Index is hovering just above the neutral 50 level, and the Moving Average Convergence Divergence (MACD) line is in positive territory, indicating that the upside pressure is gradually building.
The next resistance level for the pair is at the 23.6% Fibonacci retracement of the July-August rally, around 1.3584. However, this hurdle is significant, and a breach above it would require further confirmation before being considered a reliable indicator of a sustained trend reversal.