GBP/USD supported on cross-driven strength, will it regain 1.30 on UK data?

A solid comeback staged by the US dollar versus its major peers in Asia, put a lid on the ongoing recovery seen in the GBP/USD pair, with the bulls now gathering pace for a test of 1.30 handle amid expectations of positive UK industrial figures.

GBP/USD awaits UK manufacturing and industrial production data

Over the last hour, the spot continues to trade within the close proximity of the daily tops reached at 1.2974, as the downside remains cushioned on the back of cross-driven strength. The GBP/JPY cross rallied hard to hit fresh eight-week tops near 147.60 region in Asia, following the reports of the BOJ increasing bond purchases by JPY 50 bn. Yen crosses spike after BOJ announces increase in bond buying

On Thursday, Cable’s recovery from below 1.29 handle gained extra traction, as the US dollar slumped to fresh three-day lows of 95.56 against its main competitors, following the US ADP jobs disappointment, which is considered a proxy for Friday’s key payrolls data. US: Private sector employment increased by 158,000 jobs in June - ADP

Looking ahead, the major could keep its range trade intact above 1.2950 levels, with the upside likely to remain capped amid persisting risk-aversion, unless the UK industrial and manufacturing production data comes in way better-than the consensus forecasts, which could take the pair towards 1.3000.

However, the biggest risk event for the GBP/USD pair today remains the US NFP report, which will shape up the next direction. NFP Preview: Expect mixed labour fundamentals - Goldman Sachs

GBP/USD levels to consider             

To the upside, the immediate resistance is the 1.2984 (previous top) followed 1.3030 (5-week tops) and then 1.3050 (psychological levels). On the downside, support could be located at 1.2952/46 (10 & 5-DMA), 1.2900 (round number) and 1.2865 (50-DMA).