GBP/USD eyeing UK jobs data and FOMC decision for fresh impetus

The GBP/USD pair remained confined in 25-30 pips narrow trading range and traded with mild negative bias ahead of UK employment details and the much awaited FOMC rate decision.

Currently hovering around mid-1.2600s, nearly unchanged from yesterday's closing level, investors preferred to remain on the sidelines in anticipations of volatile moves in wake of the Fed monetary policy decision, scheduled to be announced later during NY trading session. Today's monetary policy statement would be also comprise of the updated economic projections, which would assist investors to evaluate possibilities and timing of the next Fed rate-hike move in 2017 and hence, would also help determine the pair's next leg of directional move.

On the economic data front, UK jobs report would be the key highlight during European trading session, while from the US, monthly retail sales and PPI print, might provide some short-term trading impetus during early NA session. 

Looking forward, the Bank of England is also scheduled to announce its latest monetary policy decision on Thursday but is likely to turn out as a non-event as broader consensus is pointing to the central bank's status-quo monetary policy stance.

Technical levels to watch

From current levels, 1.2675 level is likely to act as immediate resistance above which the pair is likely to make a fresh attempt to conquer 1.2700 handle and aim towards testing 100-day SMA important resistance near 1.2760 region. On the flip side, weakness below session low support near 1.2640 level is likely to get extended towards 1.2600 handle, which if broken is likely to accelerate the slide towards 1.2550 important horizontal support.
 

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