GBP/USD jumps to 1.3165 ahead of NFP

GBP/USD caught a fresh bid wave over the last hour, giving extra legs to the recovery from BOE-led slump, as we progress towards the US employment data.

GBP/USD finds bids near 1.3130 region

Currently, GBP/USD jumps +0.40% higher at 1.3161, flirting with session highs reached at 1.3164 last minutes. The cable finally ended the consolidation phase around 1.3130 region, and broke higher during the mid-European session in response to an aggressive short-covering rally, as we remain a few hours away from the highly influential US payrolls data, which is expected to a 180,000 gain in jobs and a slight fall in the unemployment rate, from 4.9% to 4.8%.

The sentiment around the higher-yielding currencies such as the GBP was also boosted amid higher European equities, especially the London markets, which advanced on post-BOE optimism. While latest comments from BOE Governor Carney and board member Broadbent also added to the renewed bids caught by the GBP/USD pair.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3201/07 (20 & 10-DMA), above which 1.3271 (daily R1) would be tested. On the flip side, support is seen at 1.3102 (post-BOE low) below that at 1.3070 (July 27 low).