GBP/USD: Bulls Taking a Breather After 5-Day Rally

GBP/USD: Bulls Taking a Breather After 5-Day Rally

The GBP/USD pair is trading in the sideways manner above 1.42 levels after rallying for five consecutive sessions.

Dollar stays on back foot

The US dollar remains on a back foot amid rally in oil prices and due to weak wage growth figures released on Friday. The payrolls blew past expectations on Friday, providing a temporary boost to the US dollar; however, a 0.1% m/m drop in the wages triggered a broad based USD sell-off.

Consequently, GBP/USD rose from 1.4107 to 1.4248 levels, before ending the week at 1.4222 levels. The spot is now trading around 1.4210 levels.

GBP/USD Technical Levels

The immediate resistance is seen at 1.4252 (50% of 1.4669-1.3835), above which the pair could test 1.4297 (weekly 10-MA). A break higher would expose 1.4361 (50-DMA). On the other hand, a break below 1.42 could see the pair test post payrolls low of 1.4107. A break lower would expose 1.4032 (23.6% of 1.4669-1.3835).

(Market News Provided by FXstreet)