GBP/USD Rejected at 1.3447: Dollar Strength Returns Ahead of Payrolls

Forex

Summary:

GBP/USD is trading around 1.3435–1.3450 as the U.S. dollar regains modest strength ahead of the U.S. Non-Farm Payrolls report. Sterling has lost momentum due to the absence of major UK economic catalysts...

SELL GBPUSD

Close Time

CLOSED

1.34470

Entry Price

1.33600

1.34900

1.34932 +0.00405 +0.30%

43.0

Pips

Loss

1.33600

1.34900

Exit Price

1.34470

Entry Price

1.34900

Market Overview

GBP/USD has entered a consolidation phase after several sessions of gains, with buyers struggling to sustain price above the 1.3450 resistance area. Market attention has shifted almost entirely toward the U.S. labor market report, which is expected to show around 80,000 new jobs in July while the unemployment rate is forecast to remain at 4.2%. A stronger-than-expected report would reinforce expectations that the Federal Reserve can maintain restrictive monetary policy for longer, strengthening the U.S. dollar across major currency pairs.

Meanwhile, sterling lacks significant domestic drivers this week. Investors are instead looking ahead to next week's UK GDP figures for clearer guidance on the British economic outlook. The Bank of England recently kept interest rates unchanged while emphasizing uncertainty surrounding inflation and the economic impact of geopolitical developments, leaving sterling vulnerable whenever global risk sentiment deteriorates.

Market Sentiment

Institutional sentiment has turned cautiously bearish for GBP/USD in the short term. Traders have reduced long sterling exposure before the payroll release, preferring to wait for confirmation of the next macro trend. Increased safe-haven demand resulting from Middle East tensions has also provided additional support to the U.S. dollar, limiting sterling's upside.

The repeated rejection around 1.3445–1.3460 indicates sellers remain active in this supply zone. Unless U.S. employment data disappoints materially, rallies toward this resistance are likely to attract renewed selling pressure.

Technical Analysis

GBP/USD Rejected at 1.3447: Dollar Strength Returns Ahead of Payrolls_1

On the M15 timeframe, Bollinger Bands (20,0,2) are beginning to narrow after the recent advance. Price has repeatedly failed to close above the upper Bollinger Band near 1.3447, indicating that bullish momentum is fading and volatility is compressing before the next directional move.

The Ichimoku Kinko Hyo (9,26,52) shows price remaining above the Kumo, but the Tenkan-sen has flattened and is converging toward the Kijun-sen, suggesting the bullish impulse is weakening. The forward cloud remains positive, but its flatter slope reflects slowing momentum rather than trend acceleration.

The Stochastic (5,3,3) has rolled over from overbought territory and produced a bearish crossover, indicating increasing downside pressure. Immediate resistance is located at 1.3475, while initial support is found near 1.3390, followed by 1.3350. As long as price remains below 1.3475, the M15 technical structure favors a corrective decline toward the lower support zone.

Trading Recommendation

Entry: 1.3447

Take Profit: 1.3360

Stop Loss: 1.3490

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GBP/USD Rejected at 1.3447: Dollar Strength Returns Ahead of Payrolls

Market Overview

Market Sentiment

Technical Analysis

Trading Recommendation

Risk Disclosure