GBP/USD: closes in 1.30's unachievable?

Currently, GBP/USD is trading at 1.2982, down -0.16% on the day, having posted a daily high at 1.3018 and low at 1.2952.

GBP/USD has been in a chop with a mixed dollar, down -0.22% in the DXY on the day. GBP/USD rallied overnight on the UK June industrial output data that beat expectations but hit a road block on the 1.30 handle at aforementioned highs, fuelled by Vantiv agreeing to buy Worldpay for EUR 10b. However, US supply came in at 1.30 the figure and sent sterling down to 1.2970 again before price stabilised, likely that traders figured the UK data was, on whole, less positive despite the beat in industrial output. 

For data today, July US producer price index arrived and missed expectations, (+1.9% vs +2.2% y/y expected, dollar negative). US initial jobless claims arrived,( 244K vs 240K estimate, dollar positive). There were some confusions over Dudley's dovish comments when he said separately to reporters, as reported by RTRS, that he would not expect the 2% inflation target to be reached in the medium term after his earlier comments when he said that he would expect inflation to move towards the 2% target. 

GBP/USD levels

In the 4 hours chart, Valeria Bednarik, chief analyst at FXStreet explained that a flat 200 EMA and a bearish 20 SMA converge in the mentioned region, reinforcing the static support, while technical indicators retain the neutral-to-bearish stance, as the Momentum indicator remains directionless below its 100 level.  "RSI turned south but holds above previous lows. A break below 1.2950 will likely lead to or a steady slide towards the 1.2870 regions, the next relevant static support," Bednarik explained.