GBP/USD down smalls ahead of UK data, near 1.2840

The Sterling is marginally down vs. the greenback on Wednesday, taking GBP/USD to the 1.2840 area ahead of key jobs report in the UK.

GBP/USD looks to data, Brexit

Cable continues to struggle for direction despite the selling pressure around the buck has intensified in recent hours following dovish comments from FOMC’s L.Brainard and another chapter of the US-Russia saga, this time played by Donald Trump Jr.

However, GBP has problems of its own as Brexit concerns remain unabated and promise to stay that way against the backdrop of increasing political uncertainty in the UK as well as lack of clarity in the Brexit negotiations.

Later in the session, UK’s labour market figures are next on tap, with consensus expecting the jobless rate to stay put at 4.6% in May. Across the Atlantic, the testimony by Chief Yellen before the House Financial Services Committee will be the salient event.

GBP/USD levels to consider

As of writing the pair is retreating 0.06% at 1.2839 facing the next support at 1.2821 (low Jul.12) followed by 1.2809 (50% Fibo of 1.2587-1.3032) and finally 1.2757 (61.8% Fibo of 1.2587-1.3032). On the upside, a breakout of 1.2876 (55-day sma) would open the door to 1.2926 (10-day sma) and then 1.2984 (high Jul.6).