GBP/USD retraces from UK jobs report-led spike to 6-day high

The GBP/USD pair ran through fresh offers at higher levels, capping UK jobs report-led gains near 1.2330 resistance.

Currently hovering around 1.2300 handle, the pair reversed all of its upbeat UK jobs and wages data-led gains to 6-day high. Further downslide, however, was limited amid broad based US Dollar retracement.

Adding to this, news report (via Bloomberg) that Germany would refuse to grant UK any favors in advance of the official Brexit negotiations hindered the major's ongoing recovery.  German officials have been asked to shun UK contacts, with regard to Brexit negotiations.

Next in focus would be US housing market data - building permits and housing starts, followed by the release of speeches from Federal Reserve Bank of San Francisco President John Williams and Federal Reserve Bank of New York President Willian Dudley.

Technical levels to watch

Immediate downside support is pegged at 1.2255-50 region below which the pair is likely to head back towards testing sub-1.2200 support near 1.2180 level before eventually dropping to 1.2125 horizontal support.

On the upside, momentum above session high resistance near 1.2330 level is likely to get extended towards 1.2365 intermediate resistance en-route its next major hurdle near 1.2400 handle.