GBP/USD slides farther below 1.30 mark

The GBP/USD pair failed to build on early up-move beyond the key 1.30 psychological mark and retreated around 50-pips from session tops touched earlier during the Asian session.

Against the backdrop of perceived dovish BoE monetary policy decision, last week's mixed UK macro data has further weakened the sentiment around the British Pound and contributed towards restricting any strong up-move beyond a four-day old trading range resistance near the 1.3020-30 region. 

Meanwhile, the market seems to have digested Friday's dismal US inflation figures, which dampened prospects for an aggressive Fed monetary policy tightening cycle. A strong pickup in the US Treasury bond yields helped the US Dollar to stage a goodish recovery and was seen also seen weighing on the major.

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It, however, remains to be seen if the pair is able to break through or hold the 100-pips broader trading range amid absent fundamental drivers, in terms of any major market moving economic releases on Monday. Hence, traders are more likely to wait for a decisive break through the mentioned range before committing to the pair's next leg of directional move. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "The immediate support comes at 1.2950, where the pair bottomed multiple times last week, with a break below it exposing the 1.2910/20 region, while below this last, 1.2870 is the next support and probable bearish target. Only above 1.3020 the pair can attempt a recovery, with selling interest probably re-surging around 1.3060."