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Forex: GBP/USD finds support at 1.5810

The pound is bouncing off session lows on Friday, as we get closer to the US NFP figures, expected at +160K in January.
The sterling is thus recovering from previous losses, after the softer UK manufacturing PMI sent the cross to fresh lows.

“On the back of our bearish USD view, we expect the pace of losses in cable to be tempered. We expect cable to push towards the 1.55 area on a 6 mth view”, commented Jane Foley, Strategist at Rabobank.

As of writing, the cross is down 0.11% at 1.5838 with the next support at 1.5809 (ma10D) followed by 1.5726 (low Jan.30).
On the upside, a breakout of 1.5892 (high Jan.23) would open the door to the 200-day moving average at 1.5894.

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The USD/CAD is getting ready for the US NFP data: "Modestly softer US numbers (there are no Canadian releases) should be mildly CAD-negative and encourage a further recovery in USD/CAD back above parity", wrote analysts Shaun Osborne and Greg Moore, pointing also to more CAD correlation to WTI (slightly lower) and Canada-US short-term rate spreads (a little firmer in the CAD’s favor) instead of the usual risk assets (stocks, EZ sovereign spreads).
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