GBP/USD refreshes daily low post US data

The GBP/USD pair snapped three consecutive days of winning streak and failed to extend early up-move to the highest level since March 28.

Spot reversed all of its daily gains to monthly peaks and dropped to fresh session low near 1.2525 region after data released from the US showed weekly jobless claims unexpected dropped by 1,000 to 234K during the week ended April 7, bearing consensus estimates anticipating a rise to 245K. 

The positive labor market reading, however, got negated by disappointing PPI figures, showing prices of finished goods and services sold by producers fell by 0.1% m-o-m during March. The yearly reading, however, ticked higher to 2.3% during the same period but was still lower than market expectations for a rise to 2.4% from previous month's reading of 2.2%. 

Today's PPI numbers could be seen as the first signs of fading inflationary pressure, which might delay additional Fed rate-hike move. The concerns, however, did little to stall the US Dollar's ongoing recovery move from two-week lows. 

Meanwhile, the British Pound was also weighed down by today's release of BOE Credit Conditions Survey, which revealed that that the lenders expect to tighten supply of unsecured consumer credit. The outcome prompted traders to take some profits off the table against the backdrop of recent recovery in excess of 200-pips. 

Technical levels to watch

Immediate support is pegged near the key 1.2500 psychological mark, which is closely followed by support near 1.2480-75 zone. A follow through selling pressure below 1.2480 support would turn the pair vulnerable to head back towards 1.2425-20 support area.

On the upside, sustained momentum back above mid-1.2500s, leading to a subsequent break through 1.2575 level (session peak), has the potential to lift the pair beyond the 1.2600 handle, and March monthly highs resistance near 1.2616 level, towards the very important 200-day SMA hurdle near 1.2635 region.