GBP/USD turns negative, dips below 1.3050

As the European session gets underway, the GBP/USD pair erased all of its early tepid recovery gains to resume its downward trajectory and dropped below 1.3050 level.

During early Asian session the major extended its short-covering led rebound from Friday's session lows near 1.3020 and rose to 1.3080. The recovery, however, was short-lived as blockbuster headline NFP number for July has increased prospects of an eventual Fed rate-hike during 2016 and kept sentiment surrounding the greenback buoyant, thus  restricting any further buying interest. 

Adding to this, the recent dovish comment from the Bank of England might continue to weigh on the British Pound and keep the GBP/USD major vulnerable in the near-term.

Technical levels to watch

On a sustained trade below 1.3050 level, the pair seems to continue drifting lower, even below 1.3000 psychological mark, towards 1.2970-65 intermediate support before eventually dropping towards its next major support near 1.2850 region in the near-term. 

Meanwhile on the upside, 1.3100 round figure mark now becomes immediate strong resistance, which if conquered convincingly seems to assist the pair to extend its recovery move towards 1.3145-50 resistance.