GBP/USD recovery turns short-lived, drops to session low at 1.3160

The GBP/USD pair's tepid bounce to 1.3200 level got sold into and the pair dropped to a fresh daily low level to currently trade around 1.3160-70 band.

The pair failed to build on to its post-FOMC sharp up-move and has now erased over 50% of gains posted on Wednesday. In absence of any economic releases from UK, the pair tracked a mild recovery in the US Dollar and headed lower. 

Meanwhile from the US, traders will confront the release of weekly jobless claims data that might provide some immediate momentum for the pair. However, the next big trigger would be Friday's release of US GDP print for second quarter of 2016. 

Trade the US Gross Domestic Product - July 29 GDP Live Coverage

From technical perspective, inability to sustain / move back above 1.3200 handle and a subsequent break below 1.3150 immediate support might now be perceived as an opportunity to initiate fresh short-positions. 

Technical levels to watch

Weakness below 1.3150 immediate support would negate possibilities of any further recovery and drag the pair back towards 1.3065-55 important support. On the flip side, sustained recovery back above 1.3200 handle might continue to face strong resistance near 1.3250 level, which if conquered should boost the pair beyond 1.3300 round figure mark , towards testing its next resistance near 1.3320-25 zone.