GBP/USD extends post-NFP downslide, drops to weekly lows near 1.3080

The GBP/USD pair extended post-US jobs report slide and has now dropped to fesh weekly lows near the 1.3085-80 region.

The US Dollar gained some bullish traction across the board after stealer headline NFP report that showed an addition of 209K new jobs in July, way above consensus estimates pointing to 183K. Meanwhile, previous month's figure was revised higher to 231K from 222K reported earlier, while the unemployment rate, on expected lines, ticked lower to 4.3%. 

   •  US: Total nonfarm payroll employment increased by 209,000 in July

Moreover, the average hourly earnings growth rate also matched expectations and came-in to show m-o-m rise of 0.3%, with the yearly rate holding steady at 2.5%. Adding to this, the US trade balance showed deficit shrinking more-than-expected to $43.6 billion for June, from $46.5 billion deficit recorded in the previous month. 

Today's slightly better-than-expected economic data provide a much-needed respite for the USD bulls, with the pair extending previous session's perceived dovish BoE decision-led sharp reversal move from fresh yearly tops.

It would now be interesting to see if the USD bulls continue to cheer today's monthly jobs data or use the current pull-back to lighten their position amid growing concerns over the US President Donald Trump's alleged links with Russia and fading expectations of further Fed rate hike action by the end of this year.

Technical levels to watch

From current levels, the pair now seems to take support near 1.3060-55 area, below which the corrective slide could get extended towards the key 1.30 psychological mark. On the upside, any recovery move back above the 1.3100 handle might now confront fresh supply near 1.3120-25 zone, above which a fresh bout of short-covering could lift the pair back towards session high resistance near the 1.3165 region.