GBP/USD trims recovery gains, consolidating around 1.25 mark

The GBP/USD pair snapped three consecutive days of losing streak and staged a minor recovery on Tuesday, albeit has trimmed some of its gains to session high near 1.2520 area.

Persistent worries over the US President Donald Trump’s protectionist policies continues to weigh on investor sentiment and hindered the US Dollar's recovery move. However, mixed US data releases on Monday reinforced expectations of solid US economic growth, and rising inflationary pressure, and thus, lent some immediate support to the greenback. 

From technical perspective, the pair on Monday decisively broke below 100-day SMA important support near 1.2500 handle and remains vulnerable to extend its near-term downslide, despite of today's minor recovery. Hence, today's mild recovery could still be categorised as consolidation following it's slide of nearly 200-pips in just three trading sessions.

Looking forward, investors this week will remain focused on key event risks - the Fed and BoE monetary policy decisions on Wednesday and Thursday respectively, followed by the release of keenly watched NFP data on Friday, in order to determine where the pair might be head next.

In the meantime, today's economic docket, featuring the release of BoE’s Consumer Credit and Net Lending to Individuals, along with Mortgage Approvals and Money Supply might provide some impetus during European session. Later during NA session, Chicago PMI and CB’s Consumer Confidence would be looked upon to grab some short-term trading opportunities.

Technical levels to watch

Currently hovering around 1.2500-10 region, immediate resistance is pegged near 1.2530-35 region above which the pair is likely to aim towards reclaiming 1.2600 handle ahead of 1.2630 resistance. 

On the flip side, sustained weakness below 1.2480 level would turn the pair vulnerable to extend its near-term slide towards 50-day SMA support near 1.2420-15 region, en-route 1.2370 level.