GBP/USD recovers to 1.3125, still struggling to move back in positive territory

After initially dropping to session low level of 1.3057, the GBP/USD pair has managed to recover its lost ground but is seen struggling to move back into positive territory. The pair is currently trading comfortably above 1.3100 handle ahead of US economic releases.

US economic releases slated for release on Tuesday includes - Conference Board's consumer confidence index for July and new home sales data for the month of June. 

Earlier during the day, the pair drifted lower despite of a broadly weaker US Dollar. The British Pound was weighed down by increasing prospects of further monetary easing by BOE after MPC member Martin Weale hinted towards supporting introducing fresh stimulus measures, as early as August. 

Meanwhile, market focus remains on this week's key highlight, FOMC monetary policy decision, scheduled to be announced on Wednesday, and would be looked upon to determine the US Dollar's trajectory in the near-future.

Trade July 27 Federal Reserve interest rate decision - Live Coverage

Technical levels to watch

On the immediate downside, 1.3060-50 area remains immediate support to watch for, below which the pair seems all set to extend its near-term downward trajectory, possibly even below 1.3000 psychological mark support, initially towards 1.2900 intermediate support and eventually towards its next major support near 1.2860-50 region.

Meanwhile on the upside, the pair needs to build on to its bullish momentum above 1.3150 resistance, which if conquered seems to boost the pair immediately towards resistance near 1.3200 round figure mark. A convincing strength above 1.3200 resistance now seems to pave way for additional recovery momentum towards its next major resistance near 1.3320 level with 1.3275-80 horizontal zone acting as intermediate resistance.