The Sterling is trading on the defensive on Monday, taking GBP/USD to the 1.3130 area ahead of the opening bell in Euroland.
GBP/USD bounces off 1.3110
Spot has recovered some pips after bottoming out in the 1.3110 area during overnight trade, as the greenback has given away part of its gains following the hawkish speech by Chief Yellen on Friday.
Today’s bank holiday in the UK markets will remove a big part of the usual activity in Europe, leaving the pair exposed to USD-dynamics and the broader risk appetite trends.
In the meantime, GBP remains under pressure following the latest CFTC report, with speculative net shorts still in record levels near 95K contracts during the week ended on August 23.
GBP/USD levels to consider
As of writing the pair is losing 0.09% at 1.3128 facing the next support at 1.3090 (20-day sma) followed by 1.2863 (low Aug.15) and finally 1.2849 (low Jul.11). On the other hand, a breakout of 1.3214 (resistance trend line off July’s high) would open the door to 1.3321 (23.6% of the post-Brexit down move) and then 1.3373 (high Aug.3).
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