GBP/USD reclaims 1.3200 and beyond on poor US Payrolls

• The British Pound (GBP) manages to regain some upside traction on Friday.
• The US Dollar (USD) tumbles to daily lows in the wake of dismal NFP in July.
• The US economy added fewer jobs than initially estimated in July (73K).

The Sterling now gathers some fresh traction and lifts GBP/USD back to the positive territory beyond 1.3200 the figure following the abrup loss of momentum in the Greenback in the wake of the publication of the US jobs report.

NFP weighs down on the Dollar

Indeed, the Greenback now faces a wave of selling pressure after the US economy added just 73K jobs last month, markedly below the 110K expected by analysts. The US Unemployment ticked higher to 4.2% (from 4.1%), also adding to the generalised softer tone of the report.

Meanwhile, Cable flirts with two-day highs in response to the steep correction in the US Dollar Index (DXY), bouncing off earlier four-month troughs around the 1.3140 zone, as investors seem to have started to reprice a potential rate cut by the Federal Resereve at its September gathering

Tech landscape

If losses extend, GBP/USD may first revisit the July valley at 1.3141 (august 1), just ahead of the May floor at 1.3139 (May 12). A continued slide could bring the key 1.3000 threshold back into view.

On the flip side, transitory resistance stands at the 100-day and 55-day SMAs at 1.3337 and 1.3505, respectively, prior to the weekly high of 1.3588 (July 24).