FXstreet.com (Barcelona) - The GBP/USD is currently operating near the1.6020 level, where it had found resistance earlier today before the release of poor US jobs data sent it bouncing.
The disappointing US employment figures made the pair temporarily jump to mark a new three-day high at 1.6109. The upwards swing had no legs, however, and the pound's gains were quickly erased by concens this week over the UK's problems to get its budget deficit under control and the pair fell before finding support at 1.5957, a level that provided support early this week.
The area around 1.6038 has served as a resistance level during this week and the pair seems to once again be easing as the American session moves along.
James Hyerczyk of ForexHound.com details the fundamental worries behind the pound's inability to solidify the gains on the dollar: The British Pound could see volatile trading over the next couple of months as the Bank of England begins to phase out of its quantitative easing program. The possibility that U.K. households will continue to face weakening labor conditions as well as tightening credit conditions could fuel further weakness. Finally, the threat of a cut in the U.K. debt rating from AAA remains a concern among long-term investors.