Photo by Colin Watts on Unsplash 

GBP/USD tested its highest bids in over three years on Thursday, briefly climbing above the 1.3600 handle in intraday trading for the first time in 40 months. Bullish momentum remains tepid, however, with investor sentiment getting hobbled by approaching US Nonfarm Payrolls (NFP) jobs data due on Friday, as well as a rapidly-accelerating blowout between US President Donald Trump and his (now former) right-hand hatchet man Elon Musk.

Jobs are a key focus for investors this week. ADP job postings dropped in May, leading investors to adjust their expectations for the upcoming NFP report. May’s NFP data is projected to show a net gain of 130K jobs, down from last month’s 177K.

Elon Musk, former head of the Trump administration’s Department of Government Efficiency (DOGE), has been criticizing Trump’s ‘big beautiful budget bill’ on social media. Musk is upset that the budget lacks the federal spending cuts he implemented without Congressional approval at the start of Trump’s second term. Their relationship is deteriorating with ongoing exchanges on social platforms.

The Trump team is preparing for trade talks with China after a call between President Trump and Chinese President Xi Jinping. Trump described the call as productive, with tariff negotiations set to continue. However, Trump and his team historically struggle to stay composed with Chinese trade officials. They recently traded insults regarding alleged trade violations related to pre-deal terms agreed upon in Geneva earlier this month.

GBP/USD price forecast

Thursday’s fresh push into three-and-a-half-year highs leaves GBP/USD firmly buried deep in bull country; the pair is already on pace to close in the green for a fifth straight month, and is up over 12.5% bottom-to-top from January’s bottom bids near 1.2100.

GBP/USD daily chart

(Click on image to enlarge)

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