GBP/USD remains close to its lowest point of the week, trading under the mid-1.3400s as market participants look ahead to the US NFP data release

GBP/USD Holds Steady Ahead of US Jobs Data

During Friday's Asian trading hours, the GBP/USD currency pair is confined to a tight range near 1.3435, hovering just above the weekly low it revisited the previous day. Market participants appear hesitant, choosing to wait on the sidelines until the release of the much-anticipated US Nonfarm Payrolls (NFP) report later today before making new directional moves.

The upcoming US employment figures are expected to shed more light on the Federal Reserve’s potential interest rate adjustments. These insights will likely have a significant impact on the short-term trajectory of the US Dollar and, consequently, the GBP/USD exchange rate. As investors brace for this key data, expectations for further monetary easing by the Fed, combined with steady equity markets, are preventing the US Dollar from extending its recent rally to a one-month high, thereby supporting the GBP/USD pair.

Additionally, the Bank of England’s (BoE) recent communication, which was less dovish and indicated that interest rates may be nearing a neutral stance, continues to provide support for the British Pound (GBP). This could help limit further losses for the GBP/USD pair. As a result, it may be wise to wait for a decisive move lower before anticipating an extended pullback from the 1.3565-1.3570 area—the highest level seen since September 18, reached earlier this week according to the economic calendar.

Currently, the pair looks set to finish the week with little overall change. Despite this, the prevailing market fundamentals seem to favor buyers, suggesting that any dips could attract renewed interest. From a technical standpoint, a clear and sustained drop below the 1.3400 psychological level would be required to confirm further downside for GBP/USD, signaling that bearish traders should proceed with caution.