GBP/USD tumbles close to Wednesday’s multi-decade lows

The GBP/USD pair spent major part of the Thursday's trading session struggling to register any meaningful recovery and has now dropped back below 1.2700 handle.

Currently trading around 1.2690-95 region, the pair's attempted recovery to 1.2740 during early European session got sold into and has now moved back closer to Wednesday's multi-decade low level of 1.2685. A broadly stronger greenback, which extended its bid tone, led by Wednesday's release of a surprisingly stronger US services sector activity gauge, has been a key driver of the pair's movement on Thursday. 

However, with a scheduled major event risk, US monthly jobs report, lined-up on Friday and near-term oversold conditions, bears might be inclined to lighten their bearish bets, which might assist the pair to stage some late recovery during US trading session. 

Traders on Thursday will focus on the usual weekly jobless claims data from the US in order to grab some short-term trading opportunities.

Technical levels to watch

A follow through selling pressure might continue to drag the pair further towards a short-term descending trend-channel support near 1.2670-65 region. With daily RSI already indicating highly oversold conditions, any further weakness below the descending trend-channel seems unlikely and the pair might witness a rebound from lower levels. 

On a sustained recovery back above 1.2700 handle, and a subsequent momentum above session high resistance near 1.2740, is likely to trigger a short-covering bounce immediately towards 1.2770 resistance above which the pair could extend its recovery momentum beyond 1.2800 handle, towards its next major resistance near 1.2830 region.