GBP/USD: double bottom ahead of NFP?

By FXStreet FXStreet (Mumbai) – The GBP/USD pair recovered from the low of 1.5313, marking a second reversal in last 24 hours from around 1.5219 (100% Fib extension of June high-July Low-Aug high) and raising prospects of a double bottom formation ahead of the US non-farm payrolls report.

Hovers around 1.5250

The spot hovers around 1.5250; working hard to hit the positive territory amid the absence of fresh fundamental cues out of Europe. The recovery from near 1.5219 levels twice since the NY session indicates more of an exhaustion on the part of the GBP bears after having scored a victory over the bulls for eight consecutive sessions.

Ahead in the day, the US monthly non-farm payrolls could trigger volatility in the financial markets. The August print is widely touted as the one that shall make or break the probability of the Fed rate hike happening this year.

GBP/USD Technical Levels

The immediate resistance is seen at 1.5260 (double bottom neckline), followed by a major hurdle at 1.5360 (200-DMA). On the other side, support is seen at 1.5219 and 1.5170 (June 1 low).
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Source:: FX Street