GBP/USD up little, above 1.29 ahead of ADP and US GDP

The GBP/USD pair reversed early European session dip below the 1.29 handle and is currently placed at the top end of daily trading range, around 1.2930 level.

The US Dollar was seen building on overnight sharp recovery from over 2-1/2 year lows, which coupled with mixed UK economic releases dragged the pair to session lows. Data released from the UK showed net lending to individuals missing estimates and the mortgage approvals surpassed expectations.

The downside, however, was cushioned in wake of some profit taking slide around the EUR/GBP cross. Adding to this, a modest pullback in the US Treasury bond yields also helped the pair to catch some fresh bids at lower levels. 

It, however, remains to be seen if the pair is able to build on the up-move amid repositioning trade ahead of the important US macro data, including the ADP report on private sector employment and revised GDP figures.

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Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes: "The downside seems limited short-term, as in the 4 hours chart, the price is struggling around a bullish 20 SMA, whilst technical indicators are attempting to bounce from their mid-lines, lacking enough strength to confirm a recovery. The daily low was set at 1.2895, the level to break to confirm additional declines, with 1.2850 and 1.2810 as the next intraday support. The pair has a strong static resistance area between 1.2920/30, with gains above the level exposing the 1.2960/70 price zone."