GBP/USD retraces back to pre-NFP level at 1.2950

With an initial drop to 1.2900 region and subsequent sharp surge above 1.3000 handle, the GBP/USD pair is now retracing back sharply to currently trade around mid-1.2900s.

Strong headline NFP print dragged the pair to fresh session low, close to 1.2900 handle before the witnessed a sudden turnaround and jumped to session high level of 1.3018, clearly pointing towards the prevalent nervous sentiment. 

A surprising strong non-farm payrolls number turned up to be highly supportive for the greenback. The buck, however, lost upside momentum on disappointment from downward revision May's already dismal print and lower than expected monthly average hourly wage growth. 

The British Pound continues to weigh down by expectations of further monetary easing by the Bank of England, due to meet for its first post-Brexit monetary policy meeting.

Technical levels to watch

On the downside, 1.2900-1.2800 remains immediate strong support, which if broken might drag the pair back towards multi-decade lows support near 1.2800 handle before eventually dropping further in the near-term. On the flip side, the pair needs to sustain its strength above 1.3000 psychological mark, which if taken-out decisively seems to pave way for a fresh bout of short-covering rally towards its next major resistance near 1.3085-90 zone (nearing 1.3100 round figure mark).