GBP/USD fades the optimism, back below 1.2900

GBP/USD has returned to the 1.2860 region after a brief adventure to session tops beyond 1.2900 the figure post-UK jobs report.

GBP/USD upside capped above 1.2900

Cable has resumed the downside after the initial euphoria following the UK’s jobs report fizzled out, with bears back in play for the third session in a row.

The pair already shed more than 3% from recent fresh cycle tops near 1.3270 recorded earlier in the month to today’s lows in the 1.2840 region, all on the back of a dovish BoE and the recovery around the buck, while domestic headlines around UK politics and Brexit appear unusually absent.

Looking ahead, Cable should stay under pressure via USD-dynamics in light of the publication of the FOMC minutes later in the NA session, with markets’ attention on any hint regarding further tightening by the Fed in the next months.

GBP/USD levels to consider

As of writing the pair is retreating 0.12% at 1.2854 and a break below 1.2846 (low Aug.15) would open the door to 1.2808 (low Jul.12) and finally 1.2747 (76.4% Fibo of 1.2587-1.3266). On the upside, the next resistance lines up at 1.2904 (high Aug.16) followed by 1.2989 (10-day sma) and finally 1.3007 (38.2% Fibo of 1.2587-1.3266).