GBP/USD swings back towards 1.2750

The GBP/USD pair finally surrendered 1.27 handle in early Europe, although the bulls were rescued by positive European equities, and subsequently took the rate back beyond the last.

GBP/USD finds support just below 1.27 handle

The pound is seen recovering ground after having hit fresh lows against its American rival during the European hours, with the GBP/USD pair now consolidating the downside and awaits fresh impetus for next directional move. At the time of writing, GBP/USD trades -0.12% lower at 1.2725, looking for a retest of 1.2750 barrier.

The latest leg higher in the major can be also attributed to stalled USD buying across the board, while return of the UK productivity to pre-downturn levels also aids the recovery in the cable. Focus now remains on the US employment data, with the highly-influential payrolls due on the cards tomorrow.

GBP/USD Levels to consider            

The pair has an immediate resistance at 1.2772 (Oct 5 high), above which at 1.2800 (key support-turned resistance) and next at 1.2850 (psychological levels). The next key support is seen at 1.2686 (3-decade lows).