GBP/USD continues to find some support near 1.2915 level

The GBP/USD pair ran through some fresh offers during early NA session and dropped closer to the lower end of the daily trading range, albeit once again has managed to recover back to 1.2925-30 region. 

The 1.2950 area capped post disappointing UK construction PMI recovery and the pair extended previous session's retracement from closer to over one-month high level beyond the key 1.30 psychological mark. 

Today's softer construction figures added to Monday's dismal UK manufacturing PMI and faded the recent hawkish rhetoric from the Bank of England, which eventually was seen weighing on the British Pound. 

Meanwhile, the US Dollar continued benefitting from the recent upsurge in the US Treasury bond yields and built on overnight gains led by US ISM manufacturing PMI, further collaborating to the softer tone surrounding the major.

With the US markets closed in observance of the Independence Day, there would be little in terms of any fresh catalyst and hence, any meaningful movement during NY trading session might turn out to be chart driven.

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Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes, "technically, the risk remains towards the downside, as in the 4 hours chart, the RSI indicator maintains its bearish slope, currently at 48, while the price develops below is 20 SMA, which slowly turns lower. The Momentum indicator in the mentioned time frame stands flat below its 100 level, reflecting the limited directional strength. The pair has now an immediate support at 1.2910, with a break below it probably resulting in additional declines towards 1.2870. Sellers contained advances around 1.2960, the immediate resistance and the level to surpass to deny additional slides ahead."