1.32 has been successfully defended but it still looks vulnerable

GBP/USD is trading 0.36% lower on Friday and 0.89% lower on the week.
Today’s non-farm payroll result send the pair through 1.32 but some of the move has been pared.

GBP/USD 4-hour chart

Cable is having another down day and looks set to finish the week in the red. The main event of the session was the US non-farm payroll report which showed 1371K vs expectations of 1350K. The unemployment rate also fell to 8.4% from last months reading of 10.2%. This is the fifth time in a row the NFP reading beat expectations but there is still the fiscal stimulus bill hanging over our heads.

GBP/USD has been a pretty risk sensitive currency in general equities markets are in the red. Looking at the chart the price has recently moved back above 1.32. There are two resistance levels to watch out for. One is in black at 1.3250 and the other is marked in orange at 1.3318. The resistance line in black is very close and looks set to be broken but the orange level looks firmer.

The indicators are in a very bearish position. The Realative Strength Index is close to the oversold zone under the 50 area. The MACD histogram is in the red but more importantly the signal lines are beaking the mid-point to the downside.

Overall on the higher timeframes the trend is still up. This could be the point that the trend might change to the downside but the break of the purple trendline and blue support zone would be a good confirmation.