GBP/USD retakes 1.29 mark ahead of UK PM May

The GBP/USD pair built on previous session's modest rebound from 1-1/2 week lows and is now making a fresh attempt to decisively move back above the 1.2900 handle. 

The British Pound seems to have found some respite after the British Retail Consortium (BRC) data showed total like-for-like sales rose 2.1% y-o-y during the month of June. The data painted a slightly rosier picture for retail sales and underpinned the Sterling. 

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The up-move, however, lacked momentum as investors remained sceptic over the sustainability of higher spending amid rising inflationary pressure and sluggish wage growth. Hence, today's speeches from a couple of MPC members - BOE Chief Economist Andy Haldane and BOE Deputy Governor Ben Broadbent, would now be looked upon for some fresh impetus. 

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Moreover, investors also seemed hesitant to initiate fresh positions ahead of a speech by the UK PM Theresa May, who is expected to pitch for cross-party consensus in order to secure a better Brexit deal.

Later during the day, second-tier US economic data - JOLTS Job Openings and Final Wholesale Inventories, would also be looked upon to grab some short-term trading opportunities.

Technical levels to watch

A strong follow through buying interest beyond the 1.2900-1.2910 region might trigger a short-covering bounce beyond 1.2930 intermediate resistance towards retesting 1.2975-80 strong hurdle. 

On the flip side, the 1.2860 level now becomes an immediate strong support to defend, which if broken could drag the pair towards 1.2835 level en-route 1.2810-1.2800 region.