GBP/USD back above 1.3800, trims losses son Friday, still heads for a weekly decline

• Pound about to post the second weekly decline in a row, retreating further from multi-year highs.
• US dollar corrects lower during the American session, probably amid profit taking.

The GBP/USD is hovering around 1.3820/30, down 75 pips for the day but off lows. Earlier on Friday, after the NFP it bottomed at 1.3777, the lowest since February 12. The greenback lost momentum during the American session and corrected lower.

The employment report showed the US economy added 379K jobs in February, a number significantly above expectations. The unemployment rate dropped from 6.3% to 6.2%. The US dollar peaked after the report with the DXY reaching the highest since November at 92.18 and then retreated to 91.85.

The ongoing correction of the US dollar also takes place as US yields move off highs. In Wall Street, equity prices are posting mixed results. The rally after the opening lost strength and also kept the decline of the dollar limited.

On a weekly basis, the GBP/USD is about to post the second decline in a row. Late in February it traded above 1.4200 before reversing to the downside. The pair is now on a correction mode. The next strong support might be seen around 1.3700/1.3750. On the upside, a firm recovery above 1.4000 would alleviate the bearish pressure.

Technical levels