GBP/USD remains vulnerable, capped by 1.3100

The greenback rose against the yen and European peers on Monday as a strong nonfarm payrolls report lifted confidence in the US economy.

In the absence of new triggers and after being rejected from the 1.31 area once again, GBP/USD has been inching lower throughout the day, having posted a daily low of 1.3028 in recent dealings. At time of writing, the pair is trading at 1.3038, 0.25% lower on the day.

Cable is falling for fourth day in a row Monday, after the BoE decided to expand its monetary policy further last week, while a stronger-than-expected US jobs report left the door open for another rate hike by the Fed this year.

GBP/USD levels to watch

In terms of technical levels, immediate supports are seen at 1.2970 (Jul 12 low), 1.2849 (Jul 11 low) and 1.2795 (Jul 6 low). On the upside, resistances could be faced at 1.3180 (10-day SMA), 1.3279 (Aug 3 low) and 1.3344 (Aug 4 high).