GBP/USD Price Analysis: Manages breath above 1.1900, downside seems favored

• GBP/USD has turned sideways above 1.1900 ahead of US NFP and UK manufacturing data.

• The 10-year US Treasury yields have dropped firmly to near 3.83% amid mixed responses on the US labor market.

• The Cable has met with the horizontal resistance plotted from 1.1915.

The GBP/USD pair has comfortably shifted its business above 1.1950 in the Asian session. The Cable is looking to stretch its recovery towards 1.1950 amid the absence of sheer anxiety among investors for the United States Nonfarm Payrolls (NFP) release. Also, investors have started shrugging off volatility associated with aggressive Fed rate hike bets. Investors understand the fact that higher inflation could be tamed by restrictive measures from the Fed, therefore, more rates from the Fed are a reality.

The US Dollar Index (DXY) has dropped below Thursdays low at 105.13 on hopes that the US labor market is not solid now as considered earlier. An 11% jump in Initial Jobless Claims and four-fold planned lay-offs by US firms are indicating that the US labor market could decelerate ahead. This might compel the Fed to continue its moderate pace for hiking rates further. The 10-year US Treasury yields have dropped firmly to near 3.83%.

Stretched recovery in the GBP/USD pair has met with the horizontal resistance plotted from February 17 low at 1.1915 on an hourly scale. The Cable is demonstrating an inventory adjustment phase, which could be a transfer of inventory from institutional investors to retail participants.

The 20-period Exponential Moving Average (EMA) at 1.1910 is providing cushion to the Pound Sterling.

Meanwhile, the Relative Strength Index (RSI) (14) has slipped to near 60.00 but has not surrendered the bullish range yet.

Should the Cable break below the round-level support of 1.1900, US Dollar bulls will drag the asset further toward March 08 high at 1.1860 followed by November 17 low at 1.17633.

On the flip side, a move above February 24 high at 1.2040 will drive the asset toward February 23 high around 1.2080. A breach of the latter will expose the asset to February 21 high around 1.2140.