GBP/USD: a busy schedule for the dollar this week, watch 1.2765

Currently, GBP/USD is trading at 1.2844, up 0.32% on the day, having posted a daily high at 1.2852 and low at 1.2800.

GBP/USD is currently drifting higher within the minor recovery of the 1.2770's, claiming the 1.28 handle at the start of this week.  The broader tone persists and the dollar has been on the back foot in April and May so far for the most part allowing the pound to recover while propelled along during times of positive economic data from the UK. 

US: Jobs report should be solid even if not spectacular - BBH

However, the UK polls have been a negative with the Conservatives lead narrowing as Labour's solid campaigning strikes up support. For the week ahead, it will be a busy schedule for the US calendar and nonfarm payrolls at the end of the week could well decide the fate of the greenback for the near term ahead of June's FOMC meeting. 

UK polls closing on Tory reversals - BBH

"The FOMC's intent to raise rates in June is clear and reflected in market pricing. But the commitment to any particular forecast of where rates are heading is less clear and seems secondary to a desire to hit the 2% inflation target," explained Kit Juckes, an economist at Societe Generale. 

GBP/USD levels

"Intraday technical readings indicate that the risk remains towards the downside, as the 20 SMA heads sharply lower above the current level, offering a dynamic resistance around 1.2895, whilst technical indicators have barely corrected oversold conditions before losing upward strength," noted Valera Bednarik, chief analysts at FXStreet.

Bednarik argues that a slide below 1.2800 should confirm additional declines ahead for the upcoming sessions. "A break below 1.2765 will likely exacerbate the downward move, as the level stands for the lowest ever since PM Theresa May announced elections mid-April."