The GBP/USD pair held on to upbeat UK PMI-led gains above 1.2600 handle, albeit has been confined within a narrow trading range as investors anxiously await for the keenly watched US monthly jobs report.
Currently holding steady around 1.2620-30 band, the pair found support and reversed early dip below 1.2600 handle after data showed activity in the UK construction sector picked-up pace in November. The UK Construction PMI jumped to the highest level since March 2016 and came-in at 52.8 for November, beating market expectations anticipating a dip to 52.2 as compared to 52.6 recorded in October.
Further up-move, however, was restricted as investors preferred to remain on the sidelines and refrain from holding big bets heading into the important US monthly jobs report, later during NA session. Wednesday's strong ADP report on US private sector employment, released on Wednesday, might have now raised barrier for the official figures and hence, a slight miss on the headline number could produce a knee-jerk negative reaction for the US Dollar. The US economy is expected to have added 175,000 new jobs in November, slightly above October's 161K.
Technical levels to watch
Bulls would be disheartened if the pair decisively breaks below 1.2600 handle below which it is likely to drift back towards 1.2540 intermediate support before eventually dropping below 1.2500 psychological mark towards testing 50-day SMA support near 1.2450 region. Meanwhile on the upside, momentum above 1.2650 level, leading to a subsequent strength above 1.2675 resistance, is likely to assist the pair back towards 1.2700 handle, which if cleared might continue boosting the pair further towards its next major hurdle near 1.2800 round figure mark.
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