GBP/USD shrug-off upbeat UK jobs data, hits fresh session low

Having failed to benefit from better-than-expected UK jobs data, the GBP/USD pair ran through some offers and has now dropped to a fresh session low.

Currently trading around mid-1.2600s, having posted a session low at 1.2635, the pair failed to attract any fresh buying interest despite of today's upbeat UK employment details showing lower-than-expected rise in Claimant Counts (2.4K vs. 5.5K expected) and better-than-expected average weekly earnings growth of 2.5%. The unemployment rate for three months to October remained unchanged at 4.8%.

Today's stronger wage growth data added on to Tuesday's upbeat print for UK consumer inflation, as measured by CPI, but failed to provide any fresh traction for the British Pound as investors opt to remain on the sidelines ahead of this week's key event risks.

This week's major events, which could have a wider effect on the pair's near-term trajectory, includes - monetary policy decisions from the US and UK. The US Federal Reserve will announce its monetary policy decision on Wednesday, while BOE is scheduled on Thursday. 

In the meantime, monthly retail sales data and PPI print from the US might provide some impetus for the pair during early NA session. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "The pair has met selling interest earlier on the day at 1.2685, the 23.6% retracement of the 1.2394/1.2774 rally, still up on the week. The technical stance is still bullish, despite the lack of upward momentum, with the Pound overall strong, which means that the upcoming FED decision could have a limited effect on the pair."

She further writes, "Below the 38.2% retracement of the same rally, at 1.2625, the pair will likely fall to the 1.2550 region, whilst below this last, there's room to test a daily ascendant trend line coming from December low, today at 1.2510. Above 1.2700 on the other hand, the pair can run up to the 1.2780/90 region on a disappointing FED, while an extension beyond 1.2800 will point to a steady advance up to the 1.2840/60 region."