GBP/USD refreshes session lows post-UK PMI, 1.42 mark could be at risk

   •  UK construction PMI falls to a 4-month low level of 50.2 in Jan. 
   •  A modest USD rebound adds to the downward pressure.
   •  Traders now seemed to hold back ahead NFP data.

The GBP/USD pair extended its retracement slide from weekly tops and refreshed session lows following the release of disappointing UK economic data.

Against the backdrop of a modest US Dollar rebound, the pair lost some more ground after data released from the UK showed that construction activity in the UK economy slowed more than expected in January. In fact, the final UK construction PMI fell to a 4-month low level of 50.2 and attracted some fresh selling around the British Pound.

The downfall, however, remained limited and the pair has been able to find some support near the 1.4200 handle as traders seemed to refrain from placing aggressive bets ahead of the keenly watched US non-farm payrolls data. 

Given that the market has been pricing in 3 Fed rate hike moves in 2018, the US employment report seems unlikely to provide any meaningful boost to the greenback and help the pair to resume with its prior bullish trajectory.

Technical levels to watch

A follow-through weakness below the 1.4200 handle is likely to accelerate the slide towards 1.4165-60 intermediate support en-route 1.4120 level and the 1.4100 handle. 

On the upside, the 1.4255-60 region now seems to act as immediate resistance, above which the pair seems all set to dart back towards reclaiming the 1.4300 handle.