GBP/USD – attempting gains after two-day sell-off

GBP/USD is attempting gains in Asia, trading moderately positive around 1.2940 following a two-day losing streak which saw prices drop to a fresh 30-year low of 1.2789 levels.

Eyes UK data

Investors await UK data release which is expected to show manufacturing production contracted in May. The industrial production is seen contracting as well. However, the data risks being ignored since equations have changed in the post Brexit world.

Later in the US session, weekly jobless claims could influence the pair. Apart from the data releases, the pair could also be influenced by newsflow relating to UK commercial property market, which as per the Bank of England (BOE) is a risk to the UK economy.

GBP/USD Technical Levels

The immediate resistance is seen at 1.30 (psychological level) above which prices could target 1.3119 (June 24 low). A break higher could yield 1.3206 (June 30 low). On the lower side, 1.2875 (daily low) could act as a strong support under which prices could test 1.28 (zero figure). A violation there could yield 1.2765 (Nov 1985 high).