GBP/USD fails to regain 1.3000

Cable managed to recover some ground after crumbling to fresh cycle lows sub-1.2800 during the European session as economic and political turmoil in the UK keeps the pound on the defensive.

GBP/USD broke decisively below the 1.30 mark during Asian hours and accelerated the decline toward a fresh 31-year low of 1.2797 before taking a breather. The pair climbed back to the 1.3000 area but failed to consolidate above and it was last trading at 1.2965, down 0.42% on the day.

On the macroeconomic front, the key event of teh day will be the release of FOMC minutes at 18:00 GMT, although the impact in markets will probably be limited as last meeting occurred before the game changer Brexit vote.

GBP/USD levels to watch

In terms of technical levels, immediate supports are seen  at 1.2797 (Jul 6 low) and 1.2700 (psychological level). On the other hand, resistances line up at 1.3025 (Jul 6 high),  1.3119 (Jun 27 low) and 1.3430 (10-day SMA).