GBP/USD holds weaker below 1.2800 handle ahead of NFP
• Absent negative Brexit headlines prompt some short-covering bounce.
• A subdued USD price action remained supportive of the intraday rebound.
• All eyes remain glued to the latest US monthly jobs report for November.
The GBP/USD pair quickly reversed an early European session dip to an intraday low level of 1.2734, with bulls eyeing a move back towards the top end of its daily trading range.
The pair continued with its two-way price action on the last trading day of the week as remain non-committal amid persistent Brexit uncertainties. Meanwhile, absent negative Brexit headlines seemed to be one of the key factors extending some support and prompting some short-covering move.
Adding to this, a subdued US Dollar price action, ahead of today's key release - the closely watched US monthly jobs report, popularly known as NFP, further collaborated to the pair's goodish intraday rebound of around 30-40 pips.
The US economy is expected to have added 200K new jobs during the month of November, down from the previous month's upbeat reading of 250K, and the unemployment rate is seen holding steady at 3.7%. The key focus will be on average hourly earnings, anticipated to have grown at a slightly faster pace of 0.3% m/m, with yearly wage growth standing at 3.1%.
• US NFP Preview: Major Banks expectations from November payrolls report
Despite today's key US macro data, investors will still have reasons to be cautious ahead of the crucial Parliamentary vote on the UK PM Theresa May’s negotiated deal on Dec. 11th, which should play an important role in driving near-term sentiment surrounding the British Pound.
Technical levels to watch
Any meaningful up-move is likely to confront some fresh supply near the 1.2800 handle, which if cleared might trigger a short-covering bounce towards weekly tops, around the 1.2835-40 region. On the flip side, the 1.2735-30 region, closely followed by the 1.2700 handle might continue to protect the immediate downside, below which the pair is likely to head back towards challenging yearly lows, around the 1.2660 region.