GBP/USD falls back to fresh session low, farther below 1.29 handle

The GBP/USD pair stalled its post NFP recovery and ran through fresh offers near the 1.2920 region, now flirting with 50-day SMA support near 1.2870-80 region. 

Better-than-expected addition of new job during the month of June and an upward revision of the previous month's reading clearly suggested the underlying strength in the US labor market. 

Hence, impressive headline NFP print to some extend negated disappointing growth in wages as investors now seemed convinced that strong jobs growth should eventually translate into higher wages and the Federal Reserve will continue with its gradual monetary tightening cycle. 

The expectation is being reinforced by the post-data sharp recovery in the US Treasury bond yields, which is underpinning the US Dollar demand and weighing heavily on the major. 

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Meanwhile, sentiment around the British Pound seems to have turned bearish, especially after today's disappointing data that faded prospects of any immediate BoE action in the near future, which is further collaborating to the heavily offered tone surrounding the major.

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Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "From a technical point of view, the 4 hours chart shows that the price is below a bearish 20 SMA, while the RSI gains downward traction near oversold levels, as the Momentum turns south, right below its 100 level. The pair has an immediate support at 1.2860, the 38.2% retracement of its latest bullish run, with a break below it exposing the pair to further slides down to 1.2770/1.2810."