GBP/USD climbs to fresh 1-month highs after US jobs data

GBP/USD extended gains to fresh 1-month highs as the dollar took a hit from worse-than-expected US employment data.

US nonfarm payrolls rose by a seasonally adjusted 151,000 in August, slowing from July’s 275,000 and  below the 180,000 expected by analysts. The unemployment rate stood unchanged at 4.9%.

GBP/USD rose nearly 80 pips following the data, breaking above previous day’s top to reach a peak of 1.3344, matching its August 4 high. In the subsequent minutes, Cable continued to trade near highs and it was last up 0.49% at the 1.3330 zone.

GBP/USD levels to consider

As for technical levels, immediate resistances could be found at 1.3344 (Aug 4 & Sep 2 high), 1.3370 (Aug 2 high) and 1.3480 (Jul 15 high). On the other hand, supports are seen at 1.3180 (50-day SMA), 1.3127 (Sep 1 low), 1.3058 (Aug 29 & 30 low), 1.3000 (psychological level) and 1.2978 (Aug 17 low).