GBP/USD targets 1.3050 or 1.2950 on UK industrial production?

The GBP/USD pair is better offered in Asia around 1.30 handle, having witnessed a temporary reversal a day before from three-week lows of 1.2950.

GBP/USD: Focus on UK dataflow

The spot failed yet another recovery attempt above 1.30 handle, as a recovery in risk sentiment appears to have faded, while resurgent USD demand across the board also keeps the upside capped.

The Asian equities are seen fading their relief rally, as oil prices turn negative, with markets digesting the latest reports of North Korea outlining detailed plans for a missile strike near the Pacific territory of Guam.

Geopolitical tensions stemming from the Korean Peninsula

Meanwhile, the US dollar is seen gaining ground against its major competitors as markets prefer to hold the world’s reserve currency in times of geopolitical tensions and uncertainty. The USD index re-takes 93.50 levels, recovering from NY lows of 93.37.

Later today, the major eagerly awaits the releases of the UK industrial and manufacturing production data, which will be released alongside the goods trade balance and construction output data, for the next direction on the pound. Also, of note will be the US PPI and FOMC member Dudley’s speech due on the cards later in the NA session.

GBP/USD levels to consider             

Valeria Bednarik, Chief Analyst at FXStreet noted: “From a technical point of view, the risk remains towards the downside as the price was unable to advance beyond its 200 EMA, whilst the 20 SMA maintains its bearish slope above it. Technical indicators in the mentioned chart lack directional strength, but within bearish territory, in line with further declines.  Support levels: 1.2965 1.2920 1.2880 Resistance levels: 1.3030 1.3060 1.2095.”