GBP/USD attempts tepid-bounce on 1.41 handle, UK jobs eyed

With improving risk conditions, the GBP/USD pair breathes a sigh of relief after the recent sell-off, as markets ignore the latest poll backing the case for Brexit.

GBP/USD regains 1.41 handle

Currently, GBP/USD now trades modestly higher at 1.4125, flirting with fresh session highs reached at 1.4127 last hour. The cable attempts a minor relief rally in the Asian trading, as markets resort to unwinding their GBP shorts as we head towards the main risk event for this week, the Fed monetary policy decision due later in the American session.

Moreover, a bout of profit-taking after the recent downward rally to fresh nine-week lows, following the latest Brexit polls showing increased favour towards the Leave campaign, with just about eight days left for the EU referendum.

Calendar-wise, the major is expected to receive fresh impetus from the UK labour market report, with the jobless rate seen staying unchanged at 5.1% in the quarter to April, with jobless claims seen flat in May, compared with a decline of 2.4K a month before. While the US PPI and industrial data will be also closely watched ahead of the Fed decision.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4143/50 (Daily pivot/ psychological levels), above which 1.4192/1.4200 (5-DMA/ round number) would be tested. On the flip side, support is seen at 1.4100/1.4091 (round figure/ multi-week low) below that at 1.4067 (daily S1).