The GBP/USD pair trimmed some of its early gains and retreated over 20-pips from session tops, albeit has managed to hold its neck above the 1.2900 handle following the US data. The pair had a muted reaction to the release of Empire State Manufacturing Index from the US that showed a sharp slowdown in the manufacturing activity in the New York state region. The index dropped into contraction territory, coming-in at -1.0 for the month of May as compared to 5.2 recorded during April and worse than consensus estimates pointing to a reading of 7.0. Today’s disappointing manufacturing data added on to the recent slew of disappointing US economic data and failed to provide any immediate respite for the US Dollar bulls. The pair, however, has failed to build on to its gains and remained below mid-1.2900s as investors seemed to await for this week’s important macroeconomic releases from the UK - inflation data and monthly employment details, before committing to the pair’s near-term direction. "There's a strong static resistance around 1.2960, meaning that the pair needs to advance beyond it to extend its advance towards the 1.3000 region. A break beyond this last will likely trigger stops, and result in an advance up to 1.3060. Below 1.2900, the picture turns short term bearish, with 1.2865 and 1.2830 as the next intraday supports" she added.