- British Pound enjoyed a nice ride against the US Dollar Intraday, as the ECB interest rate decision fueled a rally in GBPUSD.
- GBPUSD pair rocketed higher towards the 1.5120 resistance area where it is finding sellers.
- 100 simple moving average on the 4-hours chart is acting as a hurdle for buyers for more gains.
- US the nonfarm payrolls report will be released by the US Department of Labor in a while that may cause a break in the GBPUSD pair.
The GBPUSD pair surged higher after testing the 1.4900 support area Intraday. The pair even managed to break the 38.2% Fib retracement level of the last drop from the 1.5338 high to 1.4892 low, and the 50 simple moving average on the 4-hours chart.
It is currently facing resistance near the 100 simple moving average, and the 50% Fib level.
There is also a bearish trend line formed on the 4-hours chart, waiting to act as a barrier for more gains.
Today, there is a monster release in the US, as the nonfarm payrolls report, which helps in evaluating the number of people on the payrolls of all non-agricultural businesses will be published by the US Department of Labor. The expectation is of a 200K rise in the jobs, compared with the last reading of 271K in November 2015.
Let us see how the outcome shapes up and whether it affects the market sentiment or not. It is definitely a major mover, and if there is a major miss in the report, then the greenback may come under pressure in the near term.
Overall, the GBPUSD pair has several hurdles on the way up, and it won’t be easy for buyers to take it higher.