Ella 
During the Asian session on Friday, GBP/USD fluctuated in a range below 1.2750, consolidating the gains from the past three days to more than three weeks’ highs. Traders are currently reluctant to build large positions and prefer to wait for the release of U.S. non-farm payrolls data today.
The well-known non-farm payrolls (NFP) report will have an impact on the U.S. interest rate outlook and provide guidance for Federal Reserve policymakers to make their next policy decision at the December policy meeting. This in turn will help determine the near-term direction of the US dollar (USD) and provide some meaningful momentum for GBP/USD. Meanwhile, the recent decline in U.S. Treasury yields has failed to help the dollar attract any meaningful buyers or recover from multi-week lows.
Still, expectations that the U.S. central bank will take a cautious stance on interest rate cuts have been a tailwind for the dollar amid hopes that U.S. President-elect Donald Trump’s policies will fuel inflation. In addition, a softening risk tone and continued geopolitical tensions will also benefit the safe-haven dollar. Coupled with the fact that Bank of England Governor Andrew Bailey has signaled four interest rate cuts in 2025, it has prevented traders from going long on the pound, thereby limiting the rise of GBP/USD.
Nonetheless, spot prices appear poised to post a second consecutive week of modest gains, although any further gains are likely to encounter a stiff barrier near the technically important 200-day moving average S (AM) at 1.2800. Therefore, before confirming that the GBP/USD pair has formed a near-term bottom and positioning for an extension of the recent good rally from sub-1.2500 levels (or the multi-month low hit in November), waiting for strong follow-through buying is A prudent move.
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