GBP/USD: Struggle with 1.2950 extends, US data eyed

The Asian recovery in the GBP/USD pair lost legs once again just shy of 1.2950 barrier, as a sense of calm prevails across the fx board today, in the wake of escalating tensions between the US and North Korea over the missile launch row.

GBP/USD: Focus shifts to US dataflow

Additionally, a tepid bounce staged by the US dollar against its main peers, following the FOMC minutes led drop, also limits the recovery momentum in cable. Meanwhile, the GBP markets continue to weigh the triple-whammy posed by this week’s UK PMI surveys.

UK services PMI: ‘A slowing in services sector growth completes a triple-whammy of disappointing PMIs’

The spot now eagerly awaits a spate of US macro news, including the key ADP jobs and ISM services data, which will provide fresh cues on the USD dynamics, especially after the FOMC minutes released late-Wednesday failed to impress the USD bulls.

FOMC: Divided on the timing of the balance sheet adjustment - Nomura

GBP/USD levels to consider             

To the upside, the immediate resistance is the 1.2949/50 (5-DMA/ previous top) followed 1.2978 (classic R2/ Fib R3) and then 1.3030 (5-week tops). On the downside, support could be located at 1.2924 (50-DMA/ daily pivot), 1.2864 (50-DMA) and 1.2824 (20-DMA).