GBP/USD struggling to extend recovery further beyond mid-1.3000s

The GBP/USD pair built on previous session's rebound from near two-week lows and advanced to the 1.3050 area, albeit retreated few pips thereafter. 

Against the backdrop of last week's perceived dovish BoE decision, Friday's stronger US jobs report collaborated to the pair's sharp retracement from fresh yearly tops and dragged the pair to its lowest level since July 26. With the greenback failing to extend post-NFP recovery, the pair's pull-back stalled near the key 1.30 psychological mark. 

The US Dollar held weaker through early European trading session on Tuesday and was being weighed down by overnight cautious comments from the Fed's Kashkari and Bullard, which was eventually seen benefitting the pair. 

Tuesday's up-move, however, lacked conviction and the trading activity remained muted as investors preferred to stay on the sidelines ahead of the latest US inflation figures, which might provide fresh guidance over the Fed's near-term monetary policy outlook and eventually determine the pair's near-term trajectory.

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In absence of any major market moving economic releases from the UK or the US, broader market sentiment surrounding the greenback would remain a key determinant of the pair's movement through Tuesday trading session.

Technical levels to watch

On a sustained up-move back above 20-day SMA hurdle near the 1.3065 region, a fresh bout of short covering could lift the pair back towards the 1.3100 handle ahead of 1.3120-25 horizontal resistance. Meanwhile, weakness back below 1.3030 level might continue to find some fresh buying interest near the 1.30 handle, which if broken would turn the pair vulnerable to extend the near-term corrective slide towards 1.2970 intermediate level en-route 1.2925 support.