GBP/USD rebound stalling just beneath 1.29

The GBP/USD is seeing some hesitation near the 1.2880 level as the European market session gets underway, and traders are unsure of which direction to take for Thursday with a thinned-out calendar and market participants who are tired of shorting the Sterling on Brexit fears and a dovish BoE.

The Pound has slipped into a 12-month major technical bottom this week, with weakness in the GBP building thanks to a steady stream of Brexit headlines that deliver little information but the fact that a no-deal Brexit is beginning to look more likely than ever, while the Bank of England (BoE) pulled the rug out from underneath traders lately when they announced a pace of interest rate hikes that measures in years instead of months, taking the wind out of hopeful Pound-buyers' sails.

Thursday sees little meaningful for the GBP, and major pairs will be waiting for US jobless claims later today at 12:30 GMT; both initial and ongoing jobless claims are expected to tick slightly higher, and the Greenback will be the likely mover in Thursday's markets while Pound traders await the UK's next round of GDP figures due on Friday.

GBP/USD levels to watch

Support levels are opening up far below the GBP/USD as the current decline sees the pair slumping into major technical lows, according to FXStreet's own Yohay Elam: "the Technical Confluences Indicator shows that the GBP/USD has lots of resistance lines on the way up. The initial hurdle awaits at around 1.2900 which is the convergence of the Bolinger Band one-day Lower, the BB 1h-Upper, the 4h high, and the Fibonacci 38.2% one-day. The next cap is at 1.2937 which is the confluence of the Pivot Point one-month Support 1, the BB 4h-Middle. And this is not the end of the battle towards 1.3000 as we see a dense cluster of lines at 1.2964 which is last month's low, the one-day high, the Simple Moving Average 100-1h, and the SMA 5-one-day. 

On the downside, we find 1.2857 as the Pivot Point one-week Support 2, the one-day low, the Bolinger Band 1h-Lower, the BB 4h-Lower, and the BB 15m-Lower. The next substantial support line is only at 1.2777 which is the 52-week low among other minor levels. Further down, 1.2737 is the Pivot Point one-day Support 3 and the PP one-week S3."