GBP/USD fails to extend recovery further beyond 1.3030 area

Having posted a session low near the 1.2970-65 region, the GBP/USD pair caught some bids but struggled to build on the recovery move further beyond 1.3030 level. 

The pair's sharp uptick during early European session was primarily led by a news report, via Bloomberg, of a merger deal between the US listed firm - Vantiv and UK's Worldpay for approximately EUR 10 billion. 

The up-move, however, lacked any strong follow through traction as the sentiment around the British Pound seems to have turned negative following last week's perceived dovish BOE monetary policy announcement. 

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Moreover, Tuesday's upbeat JOLTS job openings data, which added to Friday's stronger NFP report and revived hopes for additional Fed rate hike action in 2017, continued underpinning the US Dollar demand and further collaborated towards keeping a lid on the pair's early up-move. 

Currently hovering around the key 1.30 psychological mark, the pair remains at the mercy of USD price dynamics ahead of the quarterly US Prelim Nonfarm Productivity and Unit Labor Costs, due for release during early NA session.

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Technical levels to watch

A convincing move beyond the 1.3030-35 region has the potential to lift the pair towards 1.3065 horizontal resistance en-route the 1.3100 handle. 

On the flip side, weakness back below 1.2980-75 zone now seems to drag the pair towards 50-day SMA support near the 1.2930 region, below which the downfall could get extended even below the 1.29 handle towards its next major support near 1.2850-45 area.