Headline: GBP/USD steadies near 1.3060 as traders brace for UK Budget and US NFP
Key Takeaways
The British pound is attempting a modest rebound against the US dollar, with GBP/USD hovering around 1.3060 after a sharp slide. Caution dominates the forex market as investors await next week’s UK Budget and the latest US nonfarm payrolls, both of which could inject fresh volatility into sterling-dollar price action.
From a technical perspective, the pair remains vulnerable. A clean break below 1.3060 would open the door to immediate support at 1.3010, the lowest level in roughly six and a half months. Below that, the 50% Fibonacci retracement of the 1.2100–1.3788 advance sits near 1.2940, a level that may attract dip buyers but also risks accelerating downside momentum if breached.
On the topside, intraday recovery attempts face hurdles at 1.3080. A move above this area would shift focus to the 38.2% Fibonacci level near 1.3140 and the 20-day simple moving average, with stronger resistance layered between 1.3210 and 1.3260. Momentum indicators lean neutral-to-bearish, with the stochastic oscillator approaching the oversold zone around 20 and the MACD still under its zero line. The broader trend remains pressured, and a sustained break above 1.3370 would likely be needed to flip the medium-term outlook to bullish.
Key Points: – GBP/USD trades around 1.3060 after a steep decline, with volatility risks from the UK Budget and US NFP. – Immediate support: 1.3010, followed by the 50% Fibonacci retracement near 1.2940. – Initial resistance: 1.3080, then 1.3140 (38.2% Fib) and the 20-day SMA; stronger cap at 1.3210–1.3260. – Technical bias is neutral-to-bearish; stochastic near oversold and MACD below zero. – Medium-term sentiment turns constructive only on a decisive break above 1.3370.
