The sell-off in the pound triggered by downbeat UK economic releases stalled just ahead of 1.29 handle, now lifting the GBP/USD pair back towards 1.2925 levels.
The major recovered almost half the losses suffered today, however, the recovery appears to lack follow-through, as traders remain cautious heading into the BOE monetary policy outcome and highly-influential quarterly inflation report (QIR) due to reported in less than an hour.
Meanwhile, on the USD side of the equation, the buck extends its consolidative mode versus its major peers near three-week highs for the third straight session, also keeping a lid on the GBP/USD pair.
GBP/USD Levels to consider
A break above 1.2961 (May 9 high) could lift the pair above 1.2990 (7-week high), beyond which a test of 1.3025 (classic R3) is imminent. Conversely, a break below 1.2931/28 (10-DMA/ daily low), leading to a subsequent break below 1.2900 (round figure) is likely to drag the pair towards testing its next support near 1.2885 (classic S2/ Fib S3).