GBP/USD trims gains to 1.2960 ahead of UK manufacturing data

As the European trading session gets underway, the GBP/USD pair erased majority of its gains and is currently trading around 1.2960 region ahead of UK manufacturing data.

Every attempt of any tepid recovery for the pair is being sold into as investors remained worried about the possible economic fallout from last month's historic vote in the UK to leave the European Union. Adding to this, prospects of further BOE monetary easing continues to weigh on the British Pound, restricting a swift recovery for the GBP/USD major.

UK economic data, slated for release on Thursday, includes manufacturing and industrial production data for the month of May. From the US, traders will also confront the release of ADP report on private sector employment and weekly jobless claims data, later during NA trading session. 

However, the key fundamental trigger, which could have a lasting effect on the GBP/USD major, would be Friday's US monthly employment data ahead of next week's BOE monetary policy meeting.

From technical perspective, the pair is reversing from 50-hourly SMA but has managed to hold above 20-hourly SMA. Hence, short-term traders would await for a decisive break beyond these immediate SMAs in order to determine the next leg of intraday move for the pair. 

Technical levels to watch

Weakness below 20-hourly SMA support near 1.2945-40 region is likely to accelerate the fall immediately towards 1.2900 handle before the pair drops to test 1.2875-70 horizontal support. Meanwhile on the upside, 1.3000 psychological mark remains immediate resistance to conquer, above which the pair is likely to extend its recovery towards 1.3050-55 resistance ahead of its next round figure mark resistance near 1.3100 level.