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GBP/USD inching closer to 1.36

The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair.

🔗 Source

💡 DMK Insight

The Pound’s rise to 1.3640 signals resilience amid US job data volatility. Stronger US jobs data typically strengthens the dollar, which can pressure GBP/USD. However, the Pound’s recovery suggests traders are pricing in potential UK economic strength or a shift in sentiment. Keep an eye on the 1.3600 support level; a break below could trigger further selling. Conversely, if the Pound holds above this level, it may attract bullish momentum, especially if upcoming UK economic indicators show improvement. This dynamic could also ripple into related pairs like EUR/GBP, where a stronger Pound might lead to a weaker Euro. Here’s the thing: while the immediate reaction to US data was bearish for GBP, the recovery indicates a potential shift in market sentiment. Traders should monitor upcoming UK economic releases closely, as they could either reinforce or undermine this bullish trend. Watch for resistance around 1.3700, which could be a key level for breakout traders.

📮 Takeaway

Monitor the 1.3600 support level for GBP/USD; a hold above could signal bullish momentum, while a break below may lead to further declines.

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