Key points:

• UK pound reverses course
• Traders eye US jobs data
• Pound logs 7.7% 2025 gain

It’s nonfarm payrolls week and that means one thing — get your trades ready, there will be volatility.

🧩 Cable Takes a Breather Pre-NFP

• The GBPUSD pair slipped toward $1.3488 early Wednesday, backing off Tuesday’s three-month high at $1.3566 as traders were de-risking ahead of Friday’s main event: US nonfarm payrolls.
• Two red sessions don’t make a trend, but they do show positioning. After a strong run, traders are trimming exposure rather than betting big into a data grenade.
• With no major UK news on deck, cable is trading like a pure dollar proxy — less tea leaves, more Uncle Sam.

📊 NFP Week = Volatility Season

• Friday’s US jobs report is shaping up as the headline act. Economists expect 54,000 new jobs in December — a soft number that could shake rate-cut expectations either way.
• Nonfarm payrolls matter because they help shape Federal Reserve policy. Strong jobs usually equal higher rates for longer. Weak jobs typically point to faster cuts.
• And that’s how you get volatility. Spreads can widen, stops can get hunted, and calm charts can turn feral. Trade smaller, or at least know where your exits are.

🇬🇧 Pound’s Solid Year

• Zoom out and the pound still looks healthy. Sterling gained 7.7% in 2025 as the dollar lost altitude across the board.
• This pullback looks more like digestion than distress — especially with the UK calendar empty this week and no fresh domestic catalysts to spook traders.
• This said, cable’s next real direction may not be decided in London, but it may be decided Friday morning, US time.

Source: Tradingview