GBP/USD recovers to 1.3000, focus shifts to UK data

Having bottomed out near 1.2980 region in early Asia, the GBP/USD pair now attempts a minor-recovery in a bid to regain 1.30 handle.

GBP/USD awaits UK data

Currently, GBP/USD drops -0.32% to 1.2997, recovering from fresh monthly lows struck at 1.2978 earlier on the day. The cable trims losses, although remains heavily offered on the back of dovish comments from the BOE policymaker McCafferty, advocating further BOE rate cuts and QE expansion.

BOE’s McCafferty suggested that the central bank should follow gradual approach, with further rate cuts closer to zero could be adopted, and quantitative easing can be stepped up.

The major now consolidates the steep drop and awaits fresh impetus for a sustained recovery, as investors turn their attention towards the UK fundamentals, with the manufacturing, industrial production and goods trade balance lined up for release later in the session ahead.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3059 (5-DMA), above which 1.3083 (daily R1) would be tested. On the flip side, support is seen at 1.2978 (monthly low) below that at 1.2900 (round figure).