GBP/USD fails to clear 1.30 barrier, surrenders daily gains

The GBP/USD pair stalled its up-move near the key 1.30 psychological mark and has now surrendered majority of daily gains to currently trade around 1.2960-65 region.

Spot ran through some fresh offers and retreated from key level despite of a subdued greenback price-action, with the key US Dollar Index pausing overnight recovery and consolidating in a narrow range. 

Meanwhile, sentiment surrounding the British Pound seems to have turned a bit negative, especially after a suspected terrorist attack in the city of Manchester and concerns over the €100 billion massive Brexit divorce bill.

Nevertheless, the pair has still managed to hold with minor gains as investors head into today's important release of the FOMC meeting minutes. The minutes would be looked upon to reaffirm June Fed rate-hike expectations, which to some extend has already been priced-in by the markets. 

With the Fed, in its latest monetary policy meeting, looking through recent data-disappointment, market participants are anticipating a more hawkish tone and would look for clues over the timing of next rate-hike action in order to determine the pair’s next leg of directional move.

   •  FOMC minutes in the limelight - Nomura

Technical levels to watch

A follow through retracement below mid-1.2900s would turn the pair vulnerable to head towards testing the 1.2900 handle before eventually dropping further towards 1.2850-45 support area. On the upside, the 1.30 had remains immediate resistance to clear, above which the up-move could get extended back towards multi-month highs resistance near 1.3040-45 region.