GBP/USD loses momentum and revisits 1.2750

Following an initial move to peaks around 1.2770, GBP/USD now surrenders part of that advance and slips back to the mid-1.2700s amid the steady downtrend in the Greenback.

The Relative Strength Index (RSI) indicator on the 4-hour chart holds comfortably above 50 and GBP/USD trades above the ascending trend line, reflecting the bullish bias.

On the upside, 1.2750 (Fibonacci 50% retracement of the latest downtrend) could be seen as next resistance before 1.2790-1.2800 (Fibonacci 61.8% retracement, 200-period SMA) and 1.2850 (static level). On the downside, immediate support is located at 1.2700 (Fibonacci 38.2% retracement) ahead of 1.2650 (100-period Simple Moving Average) and 1.2620 (Fibonacci 23.6% retracement).

GBP/USD registered small gains for the second consecutive day on Wednesday and continued to edge higher early Thursday. The technical outlook suggests that the bullish bias remains intact in the near term.

Falling US Treasury bond yields and disappointing macroeconomic data releases from the US made it difficult for the US Dollar (USD) to stay resilient against its major rivals on Wednesday. The ISM Services PMI declined to 52.1 in November from 56 in October and missed the market expectation of 55.5. Additionally, the ADP Employment Change came in at 146,000 in November, compared to analysts' estimate of 150,000.

In the meantime, EUR/GBP closed in negative territory for the sixth consecutive day on Wednesday, suggesting that Pound Sterling continued to capture capital outflows out of the Euro.

In the early American session on Thursday, the US Department of Labor will release the weekly Initial Jobless Claims. Ahead of Friday's Nonfarm Payrolls (NFP) data, however, the market reaction to this data is likely to remain short-lived. Instead, investors could react to changes in risk perception. At the time of press, US stock index futures were trading mixed. In case safe-haven flows dominate the action in financial markets later in the day, GBP/USD could struggle to push higher.