GBP/USD recovery seems capped near weekly highs

Despite of well offered tone around the greenback, the GBP/USD pair struggled to build on to its strong gains and move past weekly high.

Currently trading around 1.3070 region, off session high level of 1.3086, the pair is solely driven by the prevalent bearish sentiment surrounding the US Dollar after the Fed, at its September meeting ended on Wednesday, decided to keep interest-rates unchanged. 

The decision was in-line with market expectations but exerted intense selling pressure around the greenback and assisted the pair to recover from weekly low near 1.2945 level, touched during European session yesterday, and reclaim 1.3000 psychological mark. 

The pair extended its overnight recovery gains and jumped to a 3-day high but lacked follow-up momentum, which restricted further up-move within weekly trading range.

Today's release of weekly jobless claims and existing home sales data from the US might provide some short-term trading opportunities. Meanwhile, BOE Governor Mark Carney's speech will be in focus later during US trading session and could trigger some volatility around the GBP/USD major.

Technical levels to watch

Weekly high near 1.3091, closely followed by 1.3100 handle, remains immediate resistance levels to watch for above which the pair is likely to dart towards 10-day SMA resistance near 1.3130-35 region. On the downside, 1.3030 now seems to protect immediate downside, which if broken has the potential to drag the pair back towards 1.3000 psychological mark before the pair turns vulnerable to resume its weakening trend and aim back towards weekly lows support near 1.2950-45 zone.