GBP/USD reverses post-UK jobs spike to 1.2520

Further upside in the GBP/USD pair lost steam, with the spot now reversing the UK jobs-led spike to 1.2519 highs.

The major surrendered entire gains as markets assess the latest UK employment report. An increase in jobless claims outweighed the optimism seen on uptick in hourly wages, knocking-off cable back below 1.25 handle.

Moreover, absence of comments on monetary policy from the BOE Governor Carney, during his speech last hour, also dented the sentiment around the pound. The risk currency GBP also got hit by a renewed risk-off wave that gripped the European markets, following cautious remarks from the IMF Chief Lagarde and rising political tensions between the US and Russia over America’s  airstrikes on Syria.

Nothing of note for the major in the session ahead, except for second-tier US import prices data, and hence, attention turns towards the Chinese trade data and US macro updates lined up for release tomorrow.

GBP/USD Levels to consider            

Haresh Menghani, Analyst at FXStreet explains, “With the rebound helping the pair to break through a short-term ascending trend-channel, and a descending trend-line resistance on -hourly chart, any retracement should now find immediate support the 1.2475-65 region.”

“Bullish focus now shifts to a sustained buying interest beyond the 1.25 handle, above which the pair seems all set to surpass 1.2550-55 horizontal resistance (March 31 - April 1 highs) and aim towards reclaiming 1.2600 round figure mark ahead of March monthly highs resistance near 1.2616 and the very important 200-day SMA hurdle near the 1.2640 region,” Haresh adds.