GBP/USD: Supply caps minor-recovery near 1.2960

Amid a better risk tone prevalent in Asia this Friday, the GBP/USD pair took on the recovery from below 1.29 handle, before meeting fresh supply near 1.2960 region.

GBP/USD: 1.30 handle back on sight?

Currently, GBP/USD now trades +0.28% higher at 1.2943, pausing its Asian recovery phase at 1.2959. Having witnessed a volatile session a day before, the pound bounces back on the bids against the US dollar this session, in an attempt to regain 1.30 handle, having found some support near 1.2880 in the opening trades.

On Thursday, the GBP/USD pair finally broke above the 1.30 mark and rose as high as 1.3047 on the back of above estimates UK manufacturing and industrial production data. However, the major failed to sustain gains above the key 1.30 psychological barrier and gave away almost 170-pips in the US last session, following auspicious US ADP report and jobless claims data.

Markets continue to take cues from the fundamentals as the Brexit-related developments take a backseat for a brief time ahead of the main risk event for today, the US NFP report. While the UK goods trade balance data may also provide some incentives on the pound.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3000 (psychological levels), above which 1.3020 (5-DMA) would be tested. On the flip side, support is seen at 1.2881 (Daily low) below that at 1.2793 (multi-year low).