GBP/USD refreshes session tops, near mid-1.2900s post-UK macro data

   •  UK monthly GDP growth in July stood at 0.3%, better than 0.2% expected.
   •  UK goods trade deficit unexpectedly shrinks to £9.97 billion in July.
   •  Weaker UK manufacturing/industrial production data partly offset positive readings. 

The GBP/USD pair built on its intraday climb from sub-1.2900 level and refreshed session tops post-UK macro releases.

According to the latest monthly GDP report, the UK economic growth in July stood at 0.3% m/m as against 0.1% growth recorded in the previous month and better than 0.2% anticipated. 

Adding to this, the UK goods trade balance data also bettered expectations and came in to show an unexpected in deficit to £9.97 billion for July, down from £10.68 billion. 

The positive readings, to some extent, were negated by weaker UK industrial and manufacturing production data for July and eventually kept a lid on any strong follow-through.

However, Friday's positive Brexit remarks by the EU's chief negotiator Michel Barnier, saying that the EU is open to discussing other backstops regarding the Irish order, continued underpinning the British Pound and remained supportive of a mildly positive tone surrounding the major.

It, however, remains to be seen if the pair is able to build on the momentum or continues with its struggle to make it through 50-day SMA barrier, currently near the key 1.30 psychological mark.

Technical levels to watch

Immediate resistance is pegged near the 1.2980 region, above which the pair is likely to move back above the 1.30 handle and head towards retesting the 1.3025-30 heavy supply zone. On the flip side, sustained weakness below the 1.2900 mark is likely to accelerate the slide towards 1.2850 intermediate support en-route the 1.2800 handle.