GBP/USD fades a spike to 1.3000 neighborhood ahead of NFP release

The GBP/USD pair is seen fading its bullish spike to 1.3000 neighborhood and has now retraced back to currently trade with modest gains around 1.2970-75 band. 

On the last trading day of the week, trading activity around the pair remained subdued as markets await for the release of the crucial monthly jobs report from the US, popularly known as NFP and is known to generate substantial volatility across global financial markets. 

Meanwhile, Brexit and developments surrounding the historic referendum remains the key trigger for the British Pound. Moreover, markets are now pricing-in a higher possibility of an eventual rate cut decision when the Bank of England holds its first post-Brexit meeting next week on Thursday. 

In the meantime, investors will take near-term directional bets from today's NFP release, which if surprises on the upside would be highly support for the US Dollar and would eventually drive the GBP/USD pair lower.

Technical levels to watch

From current levels, sustained momentum above 1.3000 psychological mark now seems to assist the pair to surpass Thursday's high resistance near 1.3050 and head towards testing its next major resistance near 1.3080-85 region. On the flip side, 1.2900-1.2880 region remains immediate strong support to defend, which if broken is likely to force the pair to retest post-Brexit swing lows support near of 1.2800 handle.