GBP/USD off-lows, retests 1.3100 ahead of UK jobs

Having reversed a brief dip to session lows, the GBP/USD pair struggles to take on the recovery back above 1.31 handle, as investors remain cautious ahead of the UK labour market report due later in the session ahead.

GBP/USD trades below all major DMAs

Currently, GBP/USD now drops -0.19% to 1.3089, having bounced-off session lows struck at 1.3065 in early Asia. The cable stalled its downslide from the previous session and now attempts a minor-pullback as we progress towards the early European trading, with all eyes now focused on the UK jobs data due later today.

Markets predict another 60,000 rise in employment in the quarter ended May. This should leave the unemployment rate at its current level of 5.0%.The headline average annual earnings growth is seen rising from 2.0% to 2.4%.

However, the pound remains under pressure as the greenback remains better bid against its major rival in wake of the recent upbeat US housing data. Nothing of relevance for the major in the day ahead, except for the UK employment report, as the US calendar remains absolutely data-empty.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3114 (daily high), above which 1.3153/54 (daily pivot/ 10-DMA) would be tested. On the flip side, support is seen at 1.3030 (daily S1) below that at 1.2997 (Jul 5 low).