GBP/USD pauses 4-day winning streak ahead of UK PMI, US NFP

The GBP/USD pair brought an end to its overnight recovery attempts and met fresh supply in mid-Asia, as the bears fought back control heading into the UK construction PMI release due later in Europe.

GBP/USD remains capped below 1.2900

The major faced rejection just below 1.29 handle, and from there ran into fresh offers to hit a daily low of 1.2872, where it now wavers. The renewed downside in cable is largely on the back fresh buying seen around the greenback against its main competitors, as markets prefer to hold the US currency ahead of the crucial US NFP data.

GBP/USD drops for the first time in five days amid expectations of a downbeat UK construction PMI report. The UK construction sector activity is expected to slow 52.7 in May versus April’s 53.1.

Moreover, the sentiment around the pound remains broadly undermined amid latest polls showing the Conservative lead narrowing versus the Labor party, as we remain less than a week away from the UK general elections.

UK politics has taken centre stage, what's in store for Sterling? - Nomura

However, the losses remains capped on the back of a risk-on rally in the global equities, while investors gear up for another eventful calendar ahead, which will wrap up this NFP week.

GBP/USD Levels to consider            

Valeria Bednarik, Chief Analyst at FXStreet noted: “Technically, the 4 hours chart shows that choppy trading persists, but also that the price is above its 20 SMA and 200 EMA, both in a tight range in the 1.2840/50 region, whilst technical indicators turned lower within positive territory, heading lower within neutral territory. Given Pound's weakness, a strong US employment report could put the pair under pressure, but a break below the 1.2760 region seems unlikely at this point. Support levels: 1.2840 1.2800 1.2760 Resistance levels: 1.2920 1.2960 1.3000.”