GBP/USD flirting with weekly lows near mid-1.2800s, US macro data awaited

The GBP/USD pair failed to build on early tepid recovery move and ran through some fresh offers near the 1.2900 handle, currently probing session lows near mid-1.2800s.

A fresh wave of US Dollar buying interest seems to have emerged during early European session, despite of falling US treasury bond yields, has been a key factor for the pair's sharp slide of around 40-45 pips in the past hour or so.

Meanwhile, sentiment surrounding the British Pound also seems to be turning slightly negative amid lack of hawkish comments from the Bank on of England on Thursday, signaling no urgency to raise rates despite of an inflation overshoot. 

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Moving ahead, in absence of any market moving data due for release during the European session, focus would remain on the US macro data - inflation numbers, retail sales data and Prelim UoM Consumer Sentiment.

Also in focus would be speeches by Chicago Fed President Charles Evans and Philadelphia Fed President Patrick Harker, which might influence Fed rate-hike expectations and should also provide some impetus later during the day.

Technical levels to watch

On a sustained break below 1.2850 level, the pair is likely to accelerate the slide towards the 1.2800 handle before eventually heading towards testing its next important support near mid-1.2700s. 

Meanwhile on the upside, the 1.2900 handle now seems to have emerged as immediate strong hurdle and any additional recovery beyond the said barrier might now be capped at 1.2935 resistance level.