GBP/USD: Rebound capped near 1.2885, US data in focus

• Bulls rescued by EU Barrier’s comments, Article 50 expectations.
• 1.2900 remains a tough nut to crack heading into US macro releases.

The sharp recovery in the GBP/USD pair appears to lose steam once again near the 1.2890 region, as the bears continue to guard the last, leaving the rates to consolidate near 1.2875 region.

The spot broke the Asian consolidation phase to the downside and dipped sharply to 1.2833 lows, as the risk-off sentiment on the European markets knocked-off the risk asset GBP. 

Markets trade cautiously amid renewed worries over the US-China trade talks, in light of the latest remarks by the US President Trump on trade with China. Trump said earlier this week that the US is taking a tough stance with China on trade.

However, the Cable continues to derive support from increased expectations of Article 50 extension while the latest comments from the European Union (EU) Chief Brexit Negotiator Michel Barnier appeared to be the catalyst behind the latest leg up.

Focus now shifts towards the US macro releases, including the weekly jobless claims and Philly Fed manufacturing index, due on the cards at 1330 GMT for fresh trading impetus.

GBP/USD Technical Levels