GBP/USD slides back closer to over one-month lows, around mid-1.2800s

The GBP/USD pair failed to extend overnight recovery move and tumbled over 50-pips from session tops near the 1.2910 region.

Currently hovering around 100-day SMA, near the 1.2860 region, the pair surrendered all of the yesterday's recovery gains and inched back closer to over one-month lows amid a strong greenback recovery. In fact, the key US Dollar Index reversed majority of perceived dovish FOMC minutes-led downfall and has been one of the key factors weighing on the major.

Meanwhile, today's release of UK retail sales data, showing a monthly growth of 0.3% (vs. 0.2% expected), did little to provide any fresh boost to the British Pound and help the pair to build on previous session's recovery led by surprisingly stronger UK jobs data.

   •  UK: Don’t be misled by better retail sales numbers - ING

Next on tap would be the US economic docket, featuring the release of initial jobless claims, Philly Fed manufacturing index, industrial production and capacity utilization data. Later during the NY session, speeches by Dallas Fed President Robert Kaplan and Minneapolis Fed President Kashkari would also be looked upon for some impetus.

   •  US: Industrial production amongst major economic releases today - TDS

Technical outlook

A follow through weakness below 1.2840 level would turn the pair vulnerable to break below the 1.2800 handle and head towards testing 1.2775 support area. On the upside, momentum above the 1.2900 handle is likely to confront some fresh supply near 50-day SMA near the 1.2930 region, above which a bout of short-covering could assist the pair to move back towards reclaiming the key 1.30 psychological mark.