GBP/USD faded a bullish spike, erases all of dismal US data-led gains

The GBP/USD pair faded a bullish spike and ran through fresh offers at 1.3035 level to erased majority of its lackluster US economic data led gains. 

Currently trading back around 1.2960-70 band, the pair has failed to gain any further traction and stalled a short-covering bounce, despite of a broad based US Dollar sell-off on the back of disappointing US monthly retail sales and an unexpected decline in PPI that diminished prospects of an eventual Fed rate-hike action in 2016.

The pair even failed to attract any buying interest following the release of lower-than-expected preliminary release of consumer sentiment index for the current month that came-in at 90.4 vs 91.5 expected.

Prospects of aggressive monetary easing from the Bank of England and uncertainty surrounding the economic implication of the historic Brexit referendum continues to weigh on the British Pound. Hence, even a tepid rebound in the GBP/USD major is being utilized by market participants to add on to their bearish bets.

Technical levels to watch

On the downside, bulls would continue to try and defend 1.2950 immediate strong support, which if broken decisively should now accelerate the slide immediately towards 1.2900 handle, before the pair extends its slide further towards its next major support near 1.2850 strong support.

Meanwhile on the upside, 1.3000-1.3015 region now becomes immediate strong resistance to clear. A follow through buying interest, lifting the pair through session high, might trigger a fresh bout of short-covering rally immediately towards weekly high resistance near 1.3100 handle.