GBP/USD retreats from daily highs

GBP/USD pulled back from daily highs but holds onto positive ground for the day as the pound takes a breather on the back of upbeat UK jobs data and despite mounting Brexit fears.

GBP/USD recovered from monthly lows and reached a session high of 1.4213 before encouraging US data pushed the pair a tad lower. However, Cable is holding onto intraday gains, trading around 1.4170, up 0.44% on the day.

Markets remain in consolidation mode ahead of the eagerly awaited Fed decision due at 18:00 GMT. Even though investors have almost completely given up hopes of a June hike, July remains on the cards and attention will be on Fed’s wording, economic projections and changes in the ‘dots’.

GBP/USD levels to watch

In terms of technical levels, immediate supports are seen at 1.4089 (Jun 14 & Apr 14 low) and 1.4040 (Apr 8 low). On the other hand, next resistances could be faced at 1.4213 (Jun 15 highh), 1.4265 (Jun 14 high) and 1.4350 (100-day SMA).