Cable fell around 100 pips in immediate reaction on strong US jobs report which sent the greenback higher across the board.
US Non-Farm Payrolls report showed that the US economy added 200K jobs in January, beating forecast for 184K increase, with previous month’s figure being revised higher to 166K from initial 148K release.
Average hourly earnings came in line with expectations at 0.3% m/m, but annualized figure showed an increase to 2.9% vs forecasted 2.6%, hitting the highest level since June 2009.
US unemployment was unchanged in January at 4.1%.
Strong numbers from labor sector came as additional support to US dollar which was inflated by hawkish tone from the Fed, following its policy meeting earlier this week. Rising hopes for Fed rate hike in March were further boosted by today’s jobs report and this could accelerate recovery of greenback.
Today’s post-data dip tested solid support at 1.4133 provided by rising 10SMA, where fresh bears found temporary footstep.
Firm break below 10SMA is needed for fresh bearish signal to extend weakness from double rejection at 1.4177 and turn near-term focus lower.
However, bears face long way towards key 1.40 support zone, break of which would confirm reversal.
Today’s close in red is needed to confirm negative outlook which is forming in near-term action.

Res: 1.4207; 1.4232; 1.4277; 1.4300
Sup: 1.4133; 1.4093; 1.4050; 1.4000