GBP/USD rejected at monthly 5-MA

GBP/USD was rejected at the monthly 5-MA level of 1.2690 on Thursday and retreated below 1.26 handle ahead of the US non-farm payroll release.

Stuck at 38.2% Fibo

The pair failed to get through 1.2603, which is the 38.2% Fib retracement level of the drop from the September high of 1.3445 to Oct low of 1.2083. The flash crash low is well below 1.20 handle but the exact low is debatable.

The data docket is empty across Europe; hence, the focus is on the US non-farm payrolls and wage growth numbers.

GBP/USD Technical Levels

A break above 1.2603 (38.2% of 1.3445-1.2083) would open doors for 1.2674 (Nov 11 high) and 1.27 (zero figure). On the other hand, a breakdown of support at 1.2557 (Nov 7 low) could yield a re-test of 1.2518 (5-DMA) and 1.25 (zero figure).