GBP/USD eyeing a break below 1.2300 ahead of UK jobs

After a brief phase of consolidation seen in late-Asia/ early Europe, the GBP/USD pair finally broke to the downside post-European open, as traders price-in a negative UK labor market report due on the cards in less than hour.

GBP/USD: Daily pivot (1.2281) next on sight

GBP/USD’s retreat from one-week highs of 1.2415 regained momentum in the European session, knocking-off the rate to daily lows at 1.2307, before recovering some ground to now trade at 1.2317, still down -0.74% on the day.

The cable came under fresh selling pressure this session, as markets assess the longer-term implications of the UK May’s clean talk on Brexit, which left the ball in the EU’s court with regard to the deal negotiations. Moreover, latest comments from the European Commission (EC) member Dombrovskis added to renewed downslide in the pound. He said that the Brexit vote could have negative impact on both the European Union and the UK.

Further, anticipation of a weaker the UK jobs data also triggered fresh selling in the major. Also, the US  CPI and industrial production will have significant impact on the spot ahead of the speeches from Fed’s Yellen and Kashkari.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2400 (50-DMA), 1.2415/29 (weekly high/ 100-DMA) and 1.2500 (zero figure). While supports are aligned at 1.2300 (round figure) and 1.2281 (daily pivot) and below that at 1.2249 (20-DMA).