GBP/USD clings to gains, above 1.34 handle post-UK jobs data

   •  UK claimant count unexpectedly drops in May, unemployment rate holds steady at 4.2%.
   •  Average earnings fall short of market estimates but does little to prompt any fresh selling. 
   •  Gains remain muted ahead of the Brexit vote in the House of Commons.

The GBP/USD pair built on its intraday recovery from one-week lows and is now looking to extend the momentum further beyond the 1.3400 handle post-UK jobs data.

The pair held on to its gains despite the latest UK employment details came in to show a slightly lower than expected average earnings growth of 2.5% 3m/y in April, which was largely negated by an unexpected decline in the number of people claiming unemployment-related benefits, falling by 7.7K in May. 

This along with the unemployment rate holding steady at a multi-decade low level of 4.2% helped offset yesterday's disappointing UK macro releases and provided a minor lift to the British Pound. 

Further gains, however, are likely to remain limited as investors might prefer to wait on the sidelines ahead of a key vote on the Brexit plan in the House of Commons. 

Later during the early North American session, the release of US consumer inflation figures might influence the USD price dynamics and provide some fresh short-term trading impetus. 

Technical levels to watch

Any subsequent up-move is likely to continue lifting the pair further towards 1.3475-80 intermediate resistance en-route the key 1.3500 psychological mark. On the flip side, the 1.3400 handle, closely followed by 1.3380 level now seems to protect the immediate downside, which if broken might negate prospects of any further near-term up-move.