GBP/USD stages solid comeback ahead of UK jobs

The bid tone behind the GBP keeps growing bigger as we progress towards the European open, now pushing GBP/USD above 1.32 handle.

GBP/USD eyes on UK jobs

Currently, GBP/USD gains +0.08% to trade near session highs posted at 1.3205 some minutes ago. The cable found fresh bids just ahead of 50-DMA, and from there extended the recovery above 1.32 handle, as markets take advantage of an improved risk environment after the Asian equities attempted recovery alongside oil prices.

Moreover, traders also take profits off the table after yesterday’s sell-off triggered by rallying global yields and poor UK CPI data, as focus now shifts towards the UK jobs report, with wide expectations that the UK employment data is likely to come in much  weaker than previous.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3236/55 (20 & 5-DMA), above which 1.3295 (10-DMA) would be tested. On the flip side, support is seen at 1.3200 (round figure) below that at 1.3160 (50-DMA).