NFP Handler, Up To 200 Pips GBP/USD Jumps!

<p>&nbsp;A surprise happened on the chart of the GBP/USD currency pair last Friday when the price has jumped significantly recording a daily increase of up to 200 pips!</p><p><br /></p><p>The situation is due to the market's reaction to the publication of the United States (US) NFP employment data report which recorded a declining reading leading to a significant depreciation of the US dollar.</p><p><br /></p><p>All components in the employment report recorded gloomy readings, sparking expectations that the Federal Reserve (Fed) will likely not raise interest rates at its December meeting.</p><p><br /></p><p>The pound has managed to trade firmly again against the US dollar despite the central bank of England's (BOE) policy meeting on Thursday delivered in a dovish tone and failing to strengthen the pound initially.</p><p><br /></p><p>If observed, the price on the GBP/USD chart has jumped from the 1.22000 zone, breaking through the 1.23000 resistance and almost touching the 1.24000 level.</p><p><br /></p><p>The high level reached on last week's surge was around 1.23900 before the price slowly closed trading around that area.</p><p><br /></p><p><br /></p><p>The price movement is expected to be bullish with the price still moving above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart.</p><p><br /></p><p>If the increase continues, the level of 1.24000 will be passed before the price continues to record the highest level of the latest 8 weeks which will then target the height of 1.25000.</p><p><br /></p><p>However, if the price decline is displayed again this week, the 1.23000 zone is seen to be the focus to be tested and the price reaction around it will be observed.</p><p><br /></p><p>A dip lower will give an early warning of a bearish trend change and the price could drop to 1.22000 again.</p>