GBP/USD: Bearish pressure to increase in case the 1.31 level fails

GBP/USD has started to edge lower ahead of key US data. Further losses are likely with a drop below 1.31, FXStreet’s Eren Sengezer reports.

Sellers could take action in case cable drops below 1.31

“A risk-averse market environment is likely to cause GBP/USD to stay under bearish pressure and the US jobs report could further weigh on the pair. A positive shift in risk sentiment accompanied by an NFP-inspired dollar weakness could open the door for a rebound but this seems to be the less likely scenario.”

“1.31 (psychological level, Fibonacci 23.6% retracement of the latest downtrend) aligns as key support. With a daily close below that level, additional losses toward 1.3050 (static level) and 1.30 (psychological level, static level) could be witnessed.”

“On the upside, 1.3135 (100-period SMA) could be seen as interim resistance before 1.3160 (static level, Fibonacci 38.2% retracement, 50-period SMA) and 1.32 (psychological level, Fibonacci 50% retracement).”

See – NFP Preview: Forecasts from 10 major banks, another large gain for employment anticipated