GBP/USD: Supply caps recovery near 1.2980, UK PMI still weighs ahead of Carney

The bears fight back control over the last hour, restricting the tepid-recovery in GBP/USD near 1.2980 levels, as downbeat UK manufacturing PMI data continues to dampen the sentiment around the pound.

The manufacturing sector activity in the UK economy deteriorated sharply in the month of June, coming in worse-than consensus forecasts, the latest data from Markit revealed on Monday. UK manufacturing PMI hits 3-month lows in June, a big miss on expectations

Moreover, the rebound in Cable remains capped amid persistent strength seen in the US dollar against its major rivals, as the buck attempts to recover losses after having booked the worst quarter in seven years.

Moving on, the immediate focus now shifts towards the BOE Governor Carney’s speech due at 12GMT, which could provide the much-needed respite to the GBP bulls, in the wake of  the recent hawkish twist from the BOE policymakers.

Also, the ISM manufacturing PMI data due later in the NA session will have a significant impact on the greenback, eventually impacting GBP/USD.

GBP/USD levels to consider             

To the upside, the immediate resistance is the 1.3030 (5-week tops) followed 1.3050 (psychological mark/ May tops) and then 1.3100 (round figure). On the downside, support could be located at 1.2946 (Jun 30 low), 1.2917 (Jun 29 low) and 1.2863 (10-DMA).