GBP/USD fades a spike to 1.3060, 1.30 handle tested again

The GBP/USD pair failed to sustain upbeat UK jobs data-inspired gains and fell back in the red towards 1.30 handle, as USD demand resurfaced as focus now shifts to the Fed minutes due to be released later in the NA session.

GBP/USD hovers around 5-DMA at 1.3022

Currently, GBP/USD drops -0.19% at 1.3024, bouncing-off a brief dip below 1.30 handle. The cable traded quite volatile following the release of upbeat UK jobs data, with the major having witnessed a knee-jerk spike to 1.3060, before fresh sellers knocked-off the rate to near 1.30 handle. Although the pair recovered some ground to now trade around 1.3025 levels amid broad based USD buying.

Calendar-wise, Britain's jobs report showed that the jobless rate in the country remained at 4.9% in the quarter to June, the same as before. Jobless claims dropped by 8,600 in July, after a rise of 900 before, and compared to the estimates of the growth of 5,100. Average weekly earnings gained 2.4%, meeting estimates.

Later in the day, focus will turn to the US docket, where the Fed is scheduled to publish minutes from its July meeting with markets expecting that the statement may virtually offer no new surprises, with respect to the timing of a US rate rise.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3060 (post-UK jobs high), above which 1.3094 (20-DMA) would be tested. On the flip side, support is seen at 1.2987/58 (10 & 5-DMA) below that at 1.2900 (round figure).