GBPUSD made a couple of failed attempts to break above the 1.2700 major psychological mark then dipped to the 1.2600 area, creating a double top pattern.

A break below the neckline support could set off a drop that’s the same height as the formation or around 100 pips, sending GBPUSD to 1.2500 next. However, technical indicators are suggesting that support is likely to hold.

The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside. The 200 SMA dynamic support lines up with the double top neckline to add to its strength as a floor. However, the gap between the indicators is narrowing to suggest weakening bullish momentum.

Stochastic is already on the move up to confirm that bullish pressure is in play, and the oscillator has room to climb before reflecting overbought conditions. RSI is also heading up, so price could follow suit while buyers are in control.

GBPUSD would likely take cues from leading US jobs indicators due throughout the week, as traders attempt to price in forecasts for the NFP due on Friday.

Analysts are expecting a slight pickup in hiring of 179K versus the earlier increase of 150K, but November manufacturing PMI figures so far are pointing to a steeper contraction in employment.

The ISM services PMI is due today and might show an improvement from 51.8 to 52.2, reflecting a faster pace of expansion in the industry. This could mean upside for the US currency, especially if the jobs component shows strong growth as well.

The JOLTS job openings report is also due today and it is slated to show a smaller number of opportunities for the previous month, translating to slower hiring conditions. The ADP non-farm employment change and Challenger job cuts data are due on Wednesday.