GBP/USD keeps the red below 1.2900 handle ahead of UK jobs data
| • Fails to capitalize on the overnight uptick led by the UK PM May’s Brexit Plan B.
• The global flight to safety underpins USD and exerts some downward pressure.
• Downside remains limited ahead of the UK jobs report/wage growth data.
The GBP/USD pair held on to its softer tone through the early European session and refreshed daily lows in the last hour, albeit quickly recovered few pips thereafter.
Worries over global growth boosted the US Dollar's perceived safe-haven demand and turned out to be one of the key factors failing to assist the pair to capitalize on the previous session’s goodish rebound from the 1.2830 support area.
The overnight up-move came after the UK PM Theresa May's Brexit Plan B, which lacked any significant details but decreased the likelihood of a no-deal Brexit or a second referendum and extended some support to the British Pound.
Meanwhile, a downward revision to its global growth forecasts for 2019 and 2020 by the IMF on Monday, against the backdrop further slowdown in the Chinese economy to its weakest annual growth since 1990, prompted investors to move into traditional safe-haven currencies and kept a lid on any further gains.
The downside, however, remained cushioned, at least for the time being, as market participants now seemed to wait for today's important release of the UK labor market report, though any immediate reaction is more likely to remain short-lived amid plenty of Brexit uncertainties.
Technical levels to watch
The 1.2830 region might continue to act as immediate support, which if broken might turn the pair vulnerable to break through the 1.2800 handle and aim towards testing its next support near mid-1.2700s. On the upside, immediate resistance is pegged near the 1.2920-30 region, above which the pair is likely to make a fresh attempt towards conquering the key 1.3000 psychological mark.
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