GBP/USD surges to 1.30 handle on dismal NFP print

The GBP/USD pair extended upbeat UK manufacturing PMI-led up-move and surged through 50-day SMA hurdle to fresh two-week highs, closer to the key 1.30 psychological mark on dismal US jobs report.

The US Dollar weakened across the board after the headline NFP print showed an addition of only 156K new jobs in August, worse than consensus estimates pointing to a reading of 180K. Moreover, the unemployment rate ticked higher to 4.4% as against 4.3% expected.

Meanwhile, the major disappointment came from wage growth numbers, with average hourly earnings coming in to show a tepid 0.1% m-o-m increase in August and held the y-o-y rate at 2.5%. 

Against the backdrop of upbeat UK manufacturing PMI, a big disappointment from the much awaited jobs data provided the required bullish momentum to lift the pair beyond recent trading range. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes: "Above the mentioned daily high, the pair can approach the 1.3000 region, with gains beyond this last probably extending towards the 1.3040 region, from where the pair is expected to retreat."

"Below 1.2890 on the other hand, the levels to watch and probably bearish targets come at 1.2850 and 1.2810" she added.