The British pound is holding firm against the US dollar, with GBP/USD trading around 1.3450 on Wednesday as traders brace for the highly anticipated US Nonfarm Payrolls report on Friday. The pair remains trapped in a descending channel, but buyers are defending the 100-hour simple moving average, keeping the short-term bias constructive.
Technical analysis shows key resistance at 1.3505 — the channel’s upper boundary — with a break above that level potentially opening the door to further gains. Support sits at 1.3420, matching the 100-hour SMA, followed by 1.3400 and 1.3350. Indicators like the RSI (58.6) and MACD are mildly bullish, though low ATR readings suggest limited volatility ahead of the jobs data.
The pound has been buoyed by a softer US dollar, as recent cooling economic figures curb expectations for aggressive Federal Reserve tightening. The Bank of England’s cautious stance on rate cuts has added further support. Meanwhile, lower oil prices and US Treasury actions to support the yen have also weighed on the greenback.
For the crypto market, a weaker dollar often translates into tailwinds for digital assets. Bitcoin and major altcoins historically rally when the DXY declines, as investors seek alternative stores of value. If Friday’s employment figures disappoint, reinforcing a risk-on environment, crypto could see renewed buying interest. However, with trading volumes likely to thin out before the NFP release, any immediate breakout in GBP/USD — or conversely, in crypto — may be postponed until the data lands.
