GBP/USD Bounces Off Upward – Brace for Buying!

The GBP/USD pair is trading with a bullish bias at the 1.3560 level, amid a correction in the US dollar. The positive macroeconomic data in the United States also supported the strength of the US dollar, and it weighed even more on the GBP/USD pair, causing it to lose its early upward momentum. On the data front, at 13:30 GMT, the Halifax HPI figures for December came in, showing a drop to 0.2%, against the projected 1.0%, which weighed on the British Pound and ultimately put pressure on the GBP/USD pair on Friday.

From the US side, at 18:30 GMT, the Average Hourly Earnings for December came in, indicating a surge to 0.8%, against the anticipated 0.2%, which boosted the greenback and weighed on the GBP/USD pair. In December, the Non-Farm Employment Change declined to -140K, against the anticipated 60K, weighing on the US dollar and supporting the GBP/USD pair. During December, the Unemployment Rate declined to 6.7%, against the expected 6.8%, which lent support to the greenback. At 20:00 GMT, the Final Wholesale Inventories for November came in at 0.0%, against the anticipated -0.1%, which weighed on the US dollar and supported the GBP/USD pair on Friday.

Meanwhile, the rising number of coronavirus cases and deaths in London kept the currency pair GBP/USD under pressure in the second half of the day. The UK reported 1,325 coronavirus-related fatalities on Friday, its highest ever daily rise in deaths; the country also recorded another 68,053 infections, as health officials face a deadly start to 2021.

On the higher side, the GBP/USD pair may find resistance at the 1.3568 level, and a bullish breakout of this range could extend the buying trend until the next target level of 1.3580 and 1.3630. On the lower side, the Cable may find support at the 1.3532 and 1.3455 levels today. Good luck!