GBP/USD recovers over 40-pips from post-UK jobs data swing lows

The GBP/USD pair has managed to recover around 40-45 pips from the post-UK jobs report swing lows near the 1.3140 region. 

The pair did get a minor boost from today's slightly better-than-expected UK wage growth data, albeit still lagged behind inflation. Hence, the uptick beyond the 1.3200 handle was sold into and the pair subsequently drifted into negative territory for the third consecutive session.

   •  UK: Mixed labor market data - BBH

Meanwhile, a modest US Dollar retracement prompted some short-covering, especially after the recent slide of nearly 200-pips from last Friday's 2-week highs, and seems to be only factor behind the pair's modest rebound from 4-day lows. 

It, however, remains to be seen if the pair is able to build on the recovery move or remains capped below the 1.3200 handle amid surging US Treasury bond yields, which tends to underpin the greenback demand and keep a lid on any strong up-move.

Next in focus would be Fedspeaks, which along with the US housing market data would now be looked upon for fresh impetus for the pair's movement through NY trading session.

   •  US: Focus on housing starts and building permits - TDS

Technical levels to watch

Momentum above the 1.3200 mark is likely to confront resistance near the 1.3225 region, which if cleared could lift the pair towards 1.3265 hurdle. On the flip side, sustained weakness below 1.3140 level could extend the slide towards the 1.3100 handle before the pair eventually head towards testing 1.3065 strong horizontal support.