GBP/USD muted around multi-week lows after impressive NFP print

The GBP/USD pair managed to bounce off lows, but has failed to refresh session high following the release of US monthly jobs data.

Currently trading around 1.2160 region, the pair has a muted reaction to the influential headline NFP figure, which surpassed consensus estimates and came-in to show an impressive  235K new jobs addition to the US economy, with the unemployment rate ticked lower to 4.7%, on expected lines. 

The disappointment came from average hourly earnings, recording m-o-m growth of 0.2% as against consensus estimates pointing to 0.3% growth but was still better-than previous month's tepid 0.1% growth. 

Today's mixed jobs report reaffirmed market expectations that the Fed would eventually raise interest-rates next week and triggered a fresh wave of up-surge in the US treasury bond yields. The US Dollar also came under some selling pressure, helping the pair to hold just above multi-week lows.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, "the immediate resistance is the 1.2200 level, with an acceleration above it on a poor US employment report favoring an upward corrective movement up to 1.2260, the 61.8% retracement of the January rally."

"The mentioned multi-week low is the support to follow, as below it, the decline could extend down to 1.2070, en route to 1.2030."