GBP/USD extends the decline below 1.3100

The selling momentum around the British Pound is now dragging GBP/USD to fresh lows in sub-1.3100 levels on Friday.

GBP/USD now looks to NFP

Cable is down for the second consecutive session so far today, navigating the area of fresh 4-week lows in the vicinity of 1.3070, region last visited in early September. A combination of political uncertainty in the UK and rising jitters over the Brexit negotiations has been taking a toll around GBP sentiment as of late, motivating GBP-sellers to quickly return to the market.

In addition, the increasing buying interest around the greenback keeps the risk-associated universe under pressure, while the solid performance of US yields gives extra legs to the buck’s rally.

Looking ahead, US non-farm payrolls for the month of September will be the salient event later in the NA session, with prior surveys expecting the economy to have added 90K jobs.

GBP/USD levels to consider

As of writing the pair is retreating 0.38% at 1.3068 facing the immediate support at 1.3017 (100-day sma) followed by 1.2851 (low Aug.31) and finally 1.2770 (200-day sma). On the other hand, a breakout of 1.3130 (55-day sma) would open the door to 1.3262 (23.6% Fibo of the 2017 up move) and finally 1.3309 (10-day sma).