GBP/USD muted around 1.2660 after UK jobs report, focus shifts to Fed

The GBP/USD pair turned mildly higher, but remained within daily trading range, following the release of UK jobs data.

The UK Office for National Statistics reported Claimant Count Change for November at 2.4K sharply lower from 9.8K reported in the previous month. Consensus estimates pointed to a 6.2K rise in the number of people claiming unemployment-related benefits. Meanwhile, the Average Earnings Index, including bonus, came-in at 2.5% 3m/y for October as compared to 2.3% expected and previous, while the unemployment rate remained unchanged at 4.8%

UK jobs data failed to provide any impetus even for short-term traders and the pair continued with its subdued price action as market focus remains on the final outcome of the Fed’s monetary policy meeting. The US central bank is scheduled to announce its monetary policy decision later during NY trading session. In the meantime, US economic docket featuring monthly retail sales and PPI print might also provide short-term trading opportunities for traders. 

Technical levels to watch

Immediate upside resistance is seen at 1.2700 handle above which the pair seems all set to extend its up-move further towards 100-day SMA resistance near 1.2760 region. On the downside, momentum below session lows support near 1.2640 level seems to get extended towards 1.2600 handle before the pair eventually heads towards testing its next support near 1.2535 level.

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