GBP/USD fails to build on early gains, back around 1.2820

The GBP/USD pair eroded some of its early gains and retreated over 25-pips from session tops to currently trade around 1.2820-25 band.

The pair struggled to build on to its momentum beyond mid-1.2800s, despite of renewed greenback selling interest, with the key US Dollar Index dropping to fresh monthly lows during mid-European session. The pull-back lacked any fundamental drivers and could be attributed to some cross-driven position readjustment. 

Meanwhile, possibilities of some long-unwinding, in anticipation of possible dovish comments by BOE Governor Mark Carney, could also be one of the factors weighing on the major. 

However, sentiment surrounding the British Pound remains positive in wake of Tuesday's announcement by the UK PM Theresa May to call for a snap election on June 8 and thus, any retracement would now be looked upon as buying opportunity. 

   •  GBP/USD still targets 1.2950 – UOB

Today's US economic docket features the release of usual weekly jobless claims and Philly Fed manufacturing index, which would be looked upon for some short-term trading impetus ahead of scheduled speeches by the BOE Governor Mark Carney and the US Treasury Secretary Steven Mnuchin later during the NY session. 

Technical levels to watch

A follow through retracement is likely to find immediate support near the 1.2800 handle, which is closely followed by 1.2775-70 support (yesterday's low), below which the pair is likely to extend the corrective slide towards 1.2715 level.

On the upside, 1.2850-60 zone now seems to have emerged as immediate hurdle, which if cleared could lift the pair back towards the 1.2900 handle. Any further up-move beyond the said handle is likely to be capped at a horizontal resistance near 1.2960-65 zone.