GBP/USD struggling to reclaim 1.30 handle

Despite of its rebound from an important support near 1.2940-35 region, the GBP/USD pair struggled to move back above 1.3000 handle and has now retraced few pips from session high level of 1.2992.

Currently trading around 1.2975-80 band, an upward revision of the UK growth rate and lower-than-expected rise in current account deficit for the second quarter of 2016 helped the pair to recover from session low. The pair, however, lacked follow up buying interest amid prevalent risk-off sentiment across European equity markets on the back of Deutsche Bank crisis. 

Going forward, a slew of US economic releases that include - Core PCE Price Index, Personal Income and Spending data, Chicago PMI and revised version of UoM Consumer Sentiment Index, will be in focus during NA session and would be looked upon to grab some short-term trading opportunities.

Technical levels to watch

Immediate upside resistance is pegged at 1.3000 psychological mark. Even if the pair manages to clear this immediate hurdle, further up-move is likely to be capped at 1.3025-30 strong resistance and only a decisive strength above this important resistance would negate any near-term bearish bias and assist the pair to extend its near-term recovery trend.

Meanwhile on the downside, 1.2940 area now seems to have emerged as an important support, which if broken could accelerate the slide immediately towards 1.2900 handle and open room for further near-term depreciating move, towards retesting August monthly lows support near 1.2875-65 region.