GBP/USD Review: Surrenders UK jobs data-led uptick, dips below 1.3200 handle

   •  Investors looked past today’s mostly in-line UK jobs data.
   •  August BoE rate hike prospects do little to support GBP.
   •  A goodish pickup in the USD demand prompts some selling.

The GBP/USD pair retreated over 70-pips from the post-UK jobs data swing high and momentarily slipped back below the 1.3200 handle in the past hour.

The fact that an August BoE rate hike is still very much on the cards did little to assist the pair to capitalize on its early up-move to an intraday high level of 1.3269, supported by mostly in-line UK employment details.

The pair met with some aggressive supply and was now being weighed down by a goodish pickup in the US Dollar demand, which was seen as one of the key factors prompting some fresh selling at higher levels. 

Market participants now look forward to the Fed Chair Jerome Powell semiannual congressional testimony for clues over the pace of interest rate hikes, which should influence the USD price dynamics and eventually provide some fresh impetus. 

Technical Analysis

The latest leg of sharp fall could also be attributed to some technically selling below Asian session lows support near the 1.3130-25 region. A subsequent break below 100-hour SMA puts sellers back in control and might now drag the pair further towards the 4 July low level of 1.3171.

A follow-through selling has the potential to exert some additional downward pressure and turn the pair vulnerable to fall back towards the 1.3100 key support area.