GBP/USD struggles around 1.3430 level ahead of UK jobs data

• GBP/USD is keeping investors on edge ahead of the release of UK employment data.
• The currency pair remains affected by multiple factors, Brexit plays a crucial role.
• Investors fear another lockdown with the rising new covid cases in the UK. 

GBP/USD continues to struggle around the 1.3430 level heading towards the European open, as the investors wait for Britain's jobs data for fresh trading insights. After closing in the negative territory Monday, the pair resumed trading on the second day of the week on a positive note around 1.3432, up 0.2%, at the time of press.

Grey clouds over Brexit talks continue to hover over the currency pair. Having said that, London will continue to maintain its stance on Northern Ireland. The UK Prime Minister Boris Johnson has expressed the country's hopes for a consensual solution with European Union. So far, Britain has been threatening to trigger Article 16, which will suspend parts of the deal that have prevented a hard border on Ireland's island. Any update in the segment is likely to keep the investors engaged.

Meanwhile, after a slight pause in COVID-19 cases, the UK is again witnessing the rise in new cases, pushing regulators to announce the extension of booster shots for people over the age of 40. If the cases continue to rise, it may lead to another lockdown, resulting in adverse effects on the pair.

The US Dollar Index (DXY) refreshes its multi-day top to trade at 95.46. Also, in the US, the chatter of Fed rate hike renews amid a jump in the US inflation expectations.

The cable investor will pay attention to US Retail Sales figure and UK Claimant Count Change, October, Britain's ILO Unemployment Rate and Earnings data to further provide impetus. Traders will also keep a close eye on the Fedspeak scheduled later in the day.

GBP/USD technical levels