GBP/USD tests 10-DMA support ahead of UK jobs, Fed

The GBP/USD pair is seen extending previous losses, as the bears remain in control amid risk-off markets, which dampen the sentiment around the higher-yielding currency GBP.

The major trades largely subdued, despite broad based US dollar weakness, as investors shift to the side-lines and refrain from placing directional bets on the cable, in the showdown to the highly-influential event of this year, the FOMC interest rate decision, with a 25 bps rate hike widely expected.

In the meantime, the major may receive some fresh impetus from the UK labor market report, BOE Governor Carney’s speech and US macro releases due on the cards later today.

The GBP/USD pair is last seen changing hands at 1.2651, down -0.06% on the day, hovering close to 10-DMA at 1.2645.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2700 (100-DMA), 1.2747 (Dec 2 high) and 1.2776 (Dec 6 high). While supports are seen at 1.2629 (daily S1) and 1.2623 (zero figure) and below that at 1.2551 (Dec 12 low).