GBP/USD extends UK jobs data-led fall, refreshes session low near 1.2725

The GBP/USD pair extended mixed UK jobs data-led sharp retracement and has now dropped to fresh session lows near 1.2725 region.

The pair stalled its overnight recovery, just ahead of the 1.2800 handle, and ran through some fresh offers after disappointing weekly earnings growth data from the UK, which seems to have negated possibilities of any immediate action by the Bank of England in wake of the recent inflation overshoot. 

The selling pressure further got aggravated on news flashes that deal between DUP and UK government could be delayed until next week, which might eventually lead to postponement of impending Brexit negotiations and was seen weighing on the British Pound.

   •  Deal between DUP and Govt could be delayed until next week - BBC

Further downslide, however, remained limited amid prevalent cautious sentiment ahead of today's key event risk - FOMC decision, due later during the NY session, which would influence the US Dollar's trajectory and contribute towards driving the pair in the near-term.

   •  FOMC: What to expect from the June meeting and press conference – Deutsche Bank

Technical outlook

Carol Harmer, Founder charmertradingacademy.com writes, "if we get back below 1.2770 there is a chance of coming lower to around the 1.2720 area. Now we have to be aware that the market is looking quite strong, and since we double based down at 1.2635 we have basically gone up in a straight line...I think that buyers will once more be evident down at 1.2720/1.2695....and that they will hold longs if we get down there, and unless we break back below 1.2670 buyers will win... "