GBP/USD: Bullish or bearish post 1.3005 minor recovery?

Currently, GBP/USD is trading at 1.3043, up 0.03% on the day, having posted a daily high at 1.3055 and low at 1.3011.

GBP/USD is consolidated after the CPI induced plunge through levels on the 1.30 handle and awaits further impetus from tomorrow's retails sales data,  eyed 2.5% yy in June compared 0.9% in May. The pound is looking vulnerable to a resurgence in the greenback again while oscillating in the lower end of the 1.30 handle on a minor recovery from 1.3005 yesterday. 

The Philly Fed survey will be watched for signs of improvement in the US manufacturing sector, although expectations are for a decline from last month's survey from 27.6 to 23.7. However, the key even comes in the ECB meeting where markets will look for some dampening of Draghi's late June hawkish rhetoric, thus potentially propelling the greenback higher across the board again and potentially affecting GBP/USD to the downside. 

GBP/USD levels

Valeria Bednarik, chief analyst at FXStreet argue that technical readings favor a downward move, as in the 4 hours chart, the price is below a bullish 20 SMA:

"Technical indicators remain within negative territory, slowly gaining downward strength. Nevertheless, and given that markets are all about dollar's weakness so far this week, chances of a steeper decline are limited, with the pair probably meeting buying interest on a slide down to 1.2960," she added.

However, analysts at UOB suggest: Cable stays bullish, 1.3200 on the cards – UOB