GBP/USD: Rebound loses steam at 1.3000

GBP/USD’s recovery from below 1.29 handle gained further traction in early Europe, triggering a sharp 50-pips rally last hour.

GBP/USD testing 1.3000 – key psychological levels

Currently, GBP/USD now jumps +0.38% to 1.2980, quickly reversing a spike to fresh session highs reached at 1.2999. The cable staged a solid comeback in the Asian session and now extends its bullish run into the European morning, with the bulls attempting to regain 1.30 handle amid broad based US dollar weakness induced by a cautious stance indicated by the minutes of FOMC June 15 meeting.

However, further upside appears limited amid ongoing Brexit-related market uncertainty, while the GBP traders now shift their focus towards the economic fundamentals, with the UK manufacturing and industrial production data eagerly awaited for further momentum on the pair. While the US ADP and jobless claims data will also have significant impact as markets price-out a Fed rate hike in the upcoming quarter.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3000 (psychological levels), above which 1.3023 (Daily R1) would be tested. On the flip side, support is seen at 1.28 (Daily low) below that at 1.2793 (multi-year low).