GBP/USD turns positive post-UK jobs, near 1.2850

The British Pound recovered the smile following the release of the UK’s labour market report, with GBP/USD advancing to the 1.2855/60 band.

GBP/USD bid after data

After a test of daily lows near the key support at 1.2800 the figure, Cable met fresh buyers in the wake of the results from the UK docket.

In fact, the UK’s jobless rate ticked lower to 4.5% vs. 4.6% forecasted, while claimant count change rose by 6.0K (vs. 10K expected) and average earnings excluding/including bonus expanded at a monthly 1.8% and 2.0%, respectively in May.

GBP managed to revert the initial selling pressure in response to dovish comments from BoE’s B.Broadbent earlier in the session, which dragged spot to the vicinity of the 50% Fibo retracement of the June rally at 1.2809.

GBP/USD levels to consider

As of writing the pair is gaining 0.05% at 1.2854 facing the next hurdle at 1.2876 (55-day sma) followed by 1.2926 (10-day sma) and then 1.2984 (high Jul.6). On the other hand, a breach of 1.2812 (low Jul.12) would open the door to 1.2809 (50% Fibo of 1.2587-1.3032) and finally 1.2757 (61.8% Fibo of 1.2587-1.3032).