GBP/USD stages a comeback during the New York session

November 7, 2021

GBP/USD stages a comeback during the New York session, after dipping as low as 1.3411, is trading at 1.3503, up some 0.05% at the time of writing. Positive US Nonfarm Payrolls report initially struck the British pound, which collapsed 70 pips towards the daily low. However, as investors dissect US jobs news, global bond yields plunge, led by US Treasury yields, with the 10-year benchmark note down almost seven basis points, sitting at 1.462%, undermining the US dollar prospects.

In the daily chart, the GBP/USD pair bounced off 1.3411, and at press time is trading above Thursday’s close at 1.3497. Furthermore, if it achieves a daily close of at least around 1.3500, it would form a hammer after a strong downtrend, meaning that solid buying pressure around the lows of the day propelled the British pound higher. However, the Relative Strength Index (RSI) is at 37, flattish, which would refrain GBP/USD traders of opening fresh bids, on the possibility of higher prices.