GBP/USD drops back towards 1.2900 on mixed UK data

The GBP/USD pair failed its recovery mode once again near 1.2935 levels, now heading back towards the daily lows struck just below 1.29 handle.

GBP/USD: Will it manage to keep 1.29 handle?

With broad based US dollar recovery extending into Europe, the GBP/USD pair met fresh supply and eroded 20 pips rapidly. The greenback continues to benefit from a minor recovery seen in Treasury yields, as markets dump the US Treasuries amid risk friendly market environment experienced by a rebound in the European stock markets.

Additionally, the offered tone behind Cable is also on the back of mixed UK economic releases, with the net lending to individuals data missing estimates, while the mortgage approvals bettered expectations.

Ahead of the US datasets in GDP and ADP jobs reports, the GBP/USD pair will closely track the USD price-action, driven by persisting risk trends, for fresh near-term trading opportunities.

GBP/USD levels to consider             

Slobodan Drvenica at Windsor Brokers explains, “Downside attempts were so far contained by rising 100SMA and Fibo 38.2% of 1.2773/1.2978 upleg and firm break here would be next bearish signal, for extension towards daily Tenkan-sen 1.2875 and daily cloud base (1.2857).
Negatively aligned daily studies are also supportive for bearish near-term action.
Alternative scenario requires close above cracked Fibo 38.2% of 1.3268/1.2773 (1.2962) descend to shift near-term bias higher for test of 30SMA (1.2986) and psychological 1.3000 barrier.”