GBP/USD hits fresh 4-week lows near 1.2965

The GBP/USD pair ran through fresh offers once again above 1.30 handle, sending the rate back towards daily lows struck previously at 1.2968.

GBP/USD fails once again above 1.30 handle

Currently, GBP/USD drops -0.55% to fresh four-week lows of 1.2964, reversing a sharp spike to 1.3014 levels. The cable came under renewed selling pressure over the last hour as the greenback appears to have regained poise across the board, while the oil prices stalled its recovery and fell back in the red, dampening the demand for the higher-yielding currency GBP.

Moreover, latest dovish comments from BOE policymaker McCafferty also continue to weigh on the pound against its American rival. The BOE official said that the central bank may slash rates further to zero if the economy worsens.

Meanwhile, markets appear to ignore slightly upbeat UK industrial production and manufacturing data, as focus now shifts towards the US macro updates for fresh direction on the cable.

As such, there are no significant data in the US calendar today and investors will only see unit labor costs for the second quarter and the indicator is expected to weaken notably, from 4.5% to 1.7%.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3053 (5-DMA), above which 1.3083 (daily R1) would be tested. On the flip side, support is seen at 1.2900 (round figure) below that at 1.2876 (Jul 8 low).