GBP/USD: Upside capped below 1.2950 ahead of UK jobs

The renewed uptick seen in GBP/USD during mid-Asia lost legs just below 1.2950 barrier, sending the rate slightly lower heading into early Europe.

GBP/USD: Focus shifts to UK jobs report

The major trims gains and recedes to 1.2930 region amid widespread risk-aversion, triggered by fresh concerns over the US political scenario, this time involving President Trump.

As a result, the greenback suffered heavily across the board and help cable to keep the recovery mode intact from a dip to weekly lows of 1.2868 reached in Europe last session.

However, over the last hours, the upside lost momentum as the USD bears took a breather, awaiting fresh impetus from the European markets.  

Also, investors remain on the side-lines ahead of the UK employment report, which is expected to show a slight increase in the hourly earnings.

GBP/USD Levels to consider            

A break above 1.2961 (May 9 high) could lift the pair above 1.2990 (7-week high), beyond which a test of 1.3050 (psychological levels) is imminent. Conversely, a break below 1.2872 (May 15 low), leading to a subsequent break below 1.2842/29 (May 12 & 4 low) is likely to drag the pair towards testing its next support near 1.2800 (key support).