GBP/USD: Ready to breakout ahead of NFP

• The NFP is likely to provide some directionality to the Cable.
• Support is seen at 1.3700-1.3750 support.  

The GBP/USD is currently trading around 1.3814 having lost more than 80 pips on Thursday. The current price structure on the daily chart is quite similar to the one found on the Aussie. The big bear flag with a triangle shape will likely find some resolution of Friday with the NFP which is expected at 200K. Trump signed the Trade Section 232 Proclamation on Steel and Aluminium imports. A decision which is seen by many quite controversial and triggered fear of trade wars. Interestingly, Canada and Mexico have been exempted from the tariffs which are set are 25% on imported steel and 10% on aluminum. 

GBP/USD daily chart

Coming up next in the UK is the trade balance and industrial production on Friday at 9.30 GMT. 

In the US, earlier on Thursday, initial jobless claims for March 2 came in worst than expected at 231k vs 220k while Continuing jobless claims for February 23 beat expectation with 1.87m vs 1.921.  

4-hour chart

The 1.3150 level is likely to provide some short-term support prior to NFP as it has been an important demand level those last two months. To the upside 1.3900 with the 100-period moving average will provide some resistance. Further up, the next resistance is seen at the 1.4000 figure.