GBP/USD sticks to daily gains, above mid-1.3000s post-US data

   •  US core PCE price index falls short of expectations and prompts some fresh USD weakness.
   •  In-line personal income/spending data were largely offset by sliding US bond yields. 
   •  Reaction remains muted ahead of the highly anticipated BoE decision on Thursday.

The USD bearish pressure remained unabated through the early North-American session, with the GBP/USD pair holding on to its daily gains near multi-day tops. 

The already weaker US Dollar failed to find any support and weakened further below the 94.00 handle after the core PCE price index fell short of consensus estimates and came in at 1.9% y/y for June. Adding to the disappointment, the previous month’s reading was also revised lower to 1.9% y/y rate as against 2.0% reported earlier. 

Meanwhile, the personal income and spending data matched consensus estimates but did little to revive the USD demand. This coupled with a weaker tone surrounding the US Treasury bond yields kept exerting some downward pressure on the greenback and remained supportive of the pair’s bid tone, above mid-1.3100s.

Today's US economic docket also features the release of Chicago PMI, which along with the Conference Board's consumer confidence index but again seems unlikely to provide any meaningful trading opportunities as the focus remains glued to the highly anticipated BoE monetary policy decision on Thursday.
 
Technical levels to watch

Immediate resistance is pegged near the 1.3175-80 region, above which the pair is likely to surpass the 1.3200 handle and test 1.3220-25 resistance zone. On the flip side, the 1.3100 handle now seems to have emerged as an immediate support, which if broken could accelerate the fall towards 1.3070 horizontal support before the pair eventually aims to challenge the key 1.30 psychological mark.