GBP/USD breaches 1.3100 on solid US payrolls

The selling pressure around GBP has intensified today in the wake of US non farm payrolls, dragging GBP/USD to test fresh lows in sub-1.3100 levels.

GBP/USD offered on upbeat US data

Cable met extra downside pressure after US non-farm payrolls came in above estimates at 209K jobs for the month of July vs. 183K expected and 231K jobs from June (revised from 222K).

Adding to the solid report, average hourly earnings rose at a monthly 0.3% and 2.5% over the last twelve months (vs. 2.4% expected), while the unemployment rate matched estimates at 4.3% from 4.4%.

In the meantime, spot is down for the second session in a row so far today, trading in 5-day lows around 1.3090, as a better tone in the buck and the recent dovish message from the Bank of England keep weighing on GBP sentiment.

GBP/USD levels to consider

As of writing the pair is losing 0.38% at 1.3089 and a breach of 1.3051 (low Jul.27) would open the door to 1.3041 (21-day sma) and finally 1.3007 (38.2% Fibo of 1.2587-1.3266). On the upside, the next up barrier emerges at 1.3266 (2017 high Aug.3) followed by 1.3351 (high Sep.12 2016) and finally 1.3447 (high Sep.6 2016).