GBPUSD refreshes two-week low on mostly upbeat US jobs report, lacks follow-through

• GBPUSD comes under renewed selling pressure on Friday and drops to a fresh two-week low.
• The USD gains some traction in reaction to the upbeat NFP report and exerts some pressure on Cable.
• The lack of follow-through selling warrants some caution before placing aggressive bearish bets.

The GBPUSD pair struggles to preserve its intraday gains and drops to a fresh daily low, below mid-1.1100s during the early North American session.

The US Dollar catches some bids and recovers a major part of its early lost ground in reaction to the upbeat US employment details, which, in turn, attracts fresh sellers around the GBPUSD pair. In fact, the headline NFP showed that the US economy added 261K new jobs in October, better than the 200K estimated.

Adding to this, the previous month's reading was revised higher to 315K from 263K. That said, the jobless rate rose more than anticipated, to 3.7% from 3.5%. Nevertheless, the data reaffirms the Fed's hawkish outlook, which remains supportive of elevated US Treasury bond yields and underpins the buck.

The British Pound, on the other hand, continues to be weighed down by the Bank of England's dovish rate hike on Thursday, which suggests that the path of least resistance for the GBPUSD pair is to the downside. Bears, however, might wait for acceptance below mid-1.1100s before placing fresh bets.

Technical levels to watch