GBP/USD corrects lower towards 1.3000 ahead of UK jobs

The GBP/USD pair reversed course this Wednesday, retreating from fresh five-day highs, as the greenback attempts a minor-recovery versus its major peers after yesterday’s slump.

GBP/USD fails near 1.3065

Currently, GBP/USD drops -0.11% and hovers near session lows struck at 1.3029 last minutes. The cable is seen reversing a small portion of yesterday’s massive rally, in a profit-taking attempt ahead of the UK labour markets report due later in the European session.

UK jobs data is expected to show a slowdown in hiring ahead of Britain’s European Union referendum on 23 June. Markets forecast employers added 153,000 jobs to the economy in the three months to June, compared to 176,000 in the three months to May. The unemployment rate is expected to remain at 4.9% during the period.

The GBP/USD pair rallied for the first time in 10 days on Tuesday as stronger UK CPI coupled boosted the GBP across the board, while the greenback remained suppressed versus its major peers amid softer US inflation figures.

Besides, the UK jobs report, markets also await the FOMC minutes for next direction on the US dollar in light of fresh insights on the Fed rate hike outlook.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3050 (psychological levels), above which 1.3094 (20-DMA) would be tested. On the flip side, support is seen at 1.3000 (round figure) below that at 1.2987/58 (10 & 5-DMA).