GBP/USD: Will buyers extend control above 1.2900?

The ongoing recovery-mode in GBP/USD pair gained extra legs in the Asian trades, as the bulls tapped on 1.29 handle briefly amid risk-on market profile and a broadly subdued US dollar.

GBP/USD awaits UK jobs for fresh impetus

Over the last hour, the spot continues to consolidate the recovery, largely underpinned by strengthening GBP/JPY cross, after the yen extended losses across the board on the BOJ Governor Kuroda’s comments and Japanese government’s assessment.

Moreover, the oil-price recovery lifted the overall market sentiment and boosted the demand for the higher-yielding currency GBP, while the US dollar remains broadly side-lined, keeping the sentiment buoyed around the spot.

In the week ahead, the GBP/USD pair awaits the release of the UK jobs report for fresh impetus, while markets digest the weekend’s headlines, citing that EU Parliament may veto UK citizen's rights offer.

Next of note for the major today remains the US labour market conditions data, as the dust settles over mixed US employment data released last Friday.

GBP/USD levels to consider             

Valeria Bednarik, Chief Analyst at FXStreet noted, “Overall, the downward move remains corrective, albeit below the mentioned static support, the pair has room to extend its decline down towards 1.2750, the 61.8% retracement of the same rally. In the 4 hours chart, the scale leans towards the downside, as the 20 SMA gains bearish strength above the current level, while technical indicators hold within bearish territory, with limited directional strength. Support levels: 1.2860 1.2820 1.2785 Resistance levels: 1.2925 1.2960 1.3000.”