GBP/USD fails to extend UK PMI-led up-move further beyond 1.29 handle

The GBP/USD pair failed to build on UK PMI-led recovery move further beyond the 1.2900 handle and has now retreated around 20-pips from session tops. 

In absence of any fresh fundamental development, a modest US Dollar recovery seems to be the only factor keeping a lid on the pair's recovery move from one-week lows near 1.2830 touched during early European session. Wednesday's perceived hawkish Fed policy statement, leaving doors open for June rate-hike action, sparked a fresh leg of up-move in the US treasury bond yields and seems to be lending some support to the greenback. 

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The pair, however, has managed to hold with some minor gains and remains supported by a slew of upbeat UK PMI prints. The latest positive surprise came from the UK services PMI, which added to this week's stronger manufacturing and construction PMIs, released on Tuesday and Wednesday respectively. 

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Technically, the pair's drop to session low pointed to a break down from near-term consolidation phase, albeit lacked any subsequent selling interest. Hence, it would be prudent to wait for a clear break through the recent trading range before confirming the next leg of directional move. 

Today's US economic docket would be looked upon for some short-term trading impetus. However, Friday's keenly watch monthly jobs report from the US (NFP) is likely to act a key trend decider.

Technical levels to watch

A follow through retracement back below 1.2865-60 region now seems to drag the pair back towards 1.2835-30 intermediate support, en-route the 1.2800 handle. On the flip side, momentum above 1.2915-25 immediate strong resistance could get extended towards near mid-1.2900s, above which the pair seems all set to aim towards reclaiming the key 1.30 psychological mark.