GBP/USD retreats from highs, back below mid-1.3300s post-UK jobs data

   •  UK claimant counts jump more-than-expected, unemployment rate holds steady.
   •  Earnings growth slight better-than-expected but fail to boost GBP.
   •  Focus remains on the key FOMC decision.

The GBP/USD pair stalled its recovery move and quickly retreated back below mid-1.3300s following the release of UK jobs data. 

The pair failed to build on its up-move and met with some fresh supply after data released from the UK showed that the number of people claiming unemployment-related benefits unexpectedly jumped to 5.9K during November, much higher-than 3.2K expected.

Meanwhile, previous month’s reading was also revised higher to show claimant count change of 6.5% as against 1.1K reported earlier and the unemployment rate also missed consensus estimates but held near multi-decade low, around 4.3%, in the three months to October. 

The negative readings, to some extent, were negated by slightly better-than-expected average earnings growth, excluding bonuses, rising 2.3% over the year in October (2.2% growth expected) and in-line earnings growth with bonuses, standing at 2.5% over the year.

   •  UK Nov jobs mixed: Claimant count change disappoints, Wages tick higher

Against the backdrop of the general Brexit related uncertainty, today’s mixed jobs data did little to provide any meaningful boost to the British Pound. This coupled with some pre-Fed nervousness and repositioning trade now seems to contribute towards keeping a lid on any additional up-move for the major. 

Technical levels to watch

A follow-through retracement below 1.3315 level, leading to a break below the 1.3300 handle, could drag the pair towards 50-day SMA support near the 1.3250-45 region. 

On the flip side, bulls would be eyeing for a clear breakthrough 1.3370 level, above which the pair is likely to extend its upward trajectory back towards reclaiming the 1.3400 handle.