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FxWirePro: GBP/USD resumes downside after strong US jobs data, 1.3000 a key barrier

GBP/USD declined on Friday as sterling was weighted down after dollar was bolstered after data showed that U.S. employers hired more workers than expected in July, while wage growth also met economists’ expectations. The…

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  • GBP/USD declined on Friday as sterling was weighted down after dollar was bolstered after data showed that U.S. employers hired more workers than expected in July, while wage growth also met economists’ expectations.
     
  • The Labor Department said nonfarm payrolls increased by 209,000 jobs last month amid broad gains. June's employment gain was revised up to 231,000 from the previously reported 222,000.
     
  • Average hourly earnings increased 9 cents, or 0.3 percent, in July after rising 0.2 percent in June. That was the biggest increase in five months. Wages rose 2.5 percent in the 12 months to July, matching June's gain.
     
  • Further upside for this pair is expected to be limited as strong resistance level at 1.3200 is set to limit upside and bring decline towards lower levels.
     
  • To the upside, immediate resistance can be seen at 1.3089, a break above this level would expose the cable to next resistance level at 1.3145 levels.
     
  • To the downside strong support can be seen at 1.3020, a break below at this level will open the door towards next level at 1.3000.

    Resistance Levels

    R1:  1.3089 (38.2 % Retracement level)

    R2: 1.3145 (50 % Retracement level)

    R3: 1.3200 (61.8 % Retracement level)

    Support Levels

    S1: 1.3020 (23.6% Retracement level)                    

    S2: 1.3000 (Psychological levels)

    S3: 1.2951 (July 21st lows)

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