GBP/USD pared some early gains on Wednesday after data showed the U.S. economy created far more jobs than expected in January.
• Labor Department data showed 130,000 workers were added to nonfarm payrolls in January, well above forecasts for a rise of 70,000, while both November and December were revised down a touch.
• The unemployment rate ticked lower to 4.3% from 4.4% in December, below forecasts for a reading of 4.4%.
• Market expectations for a Fed cut of at least 25 basis points at the central bank's March meeting had risen to about 20% before the jobs data, and were back to a roughly 6% after the report, according to CME's FedWatch Tool.
•Looking ahead he focus will be on Thursday's British GDP data for both January and the fourth quarter of 2025..
• Immediate resistance is located at 1.3716(38.2%fib), any close above will push the pair towards 1.3810(Jan 30th high)
• Strong support is seen at 1.3610(SMA20) and break below could take the pair towards 1.3581(50% fib).
Recommendation: Good to buy around 1.3640 with stop loss of 1.3560 and target price of 1.3730
