GBP/USD recovers above 1.3140 ahead of FOMC minutes and EU summit
|- Volatility in GBP crosses remain low despite EU summit and Brexit comments.
- Cable off lows but still down 50 pips so far today.
The GBP/USD pair continued to recover ground after the beginning of the US session and climbed to 1.3138. Earlier today bottomed following lower than-expected UK inflation data at 1.3098.
The pair was hovering around 1.3130, down for the day but off lows. The recovery took place after the US dollar lost strength in the market. Weak housing data limited the demand for the greenback. Focus now turns to the FOMC minutes to be released at 18:00 GMT.
In Europe, the EU summit with Brexit on focus will continue today and on Thursday. Many comments from UK and EU officials hit the wires today but with limited influence on markets. Volatility is expected to rise as the meeting goes on, with the pound likely to be more sensitive on Thursday than today, to rumors and comments.
GBP/USD Short-term levels
To the upside, resistance levels might be seen at 1.3140 (US session high), followed by 1.3170 and 1.3195 (Oct 17 high). On the flip side, support could be located at 1.3115 and then at 1.3095/1.3100 (Oct 17 low) and 1.3080.
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