GBP/USD keeps red near 1.2350 after NFP data

The GBP/USD pair maintained its bearish bias near session through following the release of closely watched monthly jobs report from the US.

Currently trading around 1.2350 region, the pair ran through some offers despite of a disappointing headline NFP print. According to the data release, the US economy added 156K new jobs during the month of December and the unemployment rate ticked higher to 4.7% from previous month’s 4.6%. The headline number fell short off consensus estimates, pointing to addition of 178K new jobs. 

However, average hourly earnings surprised on the upside and came-in to show a growth of 0.4% for December as compared to a growth of 0.3% expected and a contraction of 0.1% recorded in the previous month.

Today’s mixed jobs report failed to influence market expectations over Fed rate-hike actions in 2017, albeit helped the key US Dollar Index to hold on to the recovery gains following yesterday’s sell-off in wake of slightly less hawkish FOMC meeting minutes.

Technical levels to watch

A follow through selling pressure below 1.2335-30 support, the pair seems vulnerable to break below 1.2300 handle and head towards testing its next support near 1.2285 horizontal zone, en-route 1.2240-35 support. 

On the upside, sustained recovery momentum back above 1.2400 handle might lift the pair back towards 50-day SMA resistance near 1.2425-30 region, which if conquered should pave way for continuation of the pair’s recovery trend further towards reclaiming 1.2500 psychological mark.