GBP/USD plunges to erase Thursday's strong gains

A broad based greenback recovery gained additional leg during early US trading session, with the GBP/USD pair accelerating its slide and tumbling back close to 1.3000 psychological mark to currently trade at session low around 1.3030-40 band.

Having posted a fresh 2-week high during early Asian session on Friday, the pair has now erased all of its Thursday's gains led by stellar UK monthly retail sales data. In absence of any fresh fundamental trigger, the pair's ongoing slide could be looked upon as a profit-taking move ahead of a weekend. 

On the economic data front from UK, public sector borrowing (a non-market moving release) dropped by £1.5 billion during July as compared to a rise of £7.5 billion in June. 

Technical levels to watch

A follow through selling pressure below 1.3000 mark might now negate expectations of any further recovery for the pair and turn it vulnerable to drop back towards 1.2950, en-route 1.2900 strong support. Meanwhile, a resumption of buying interest around 1.3000 level should lift the pair back towards 1.3060 level before making an attempt to reclaim 1.3100 round figure mark.