GBP/USD retests 1.2960 as USD drops further, UK data eyed

The GBP/USD pair remains unperturbed by renewed bout of risk-aversion and continues to extend its recovery towards 1.30 handle.

GBP/USD finds fresh bids near 1.2940

Currently, GBP/USD now trades +0.35% higher at 1.2951, having posted session highs at 1.2960 last hour. The cable is seen consolidating the Asian recovery near daily highs and appears to gather pace for further upside as the greenback continues to correct US ADP-backed gains amid worsening risk sentiment.

Moreover, markets now turn cautious as they fret over the upcoming US payrolls data, especially after last month’s shocker and prefer to unwind their USD longs heading to the main risk event for today. The non-farm payrolls data is expected to show 175,000 jobs gain for June, according to a Reuters poll.

In the meantime, the UK goods trade balance data will be tracked along with the broader market sentiment for further impetus on the risk currency GBP.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3000 (psychological levels), above which 1.3020 (5-DMA) would be tested. On the flip side, support is seen at 1.2881 (Daily low) below that at 1.2793 (multi-year low).