The overnight recovery in GBP/USD found extra legs in mid-Asia, now pushing the rate further towards 1.30 handle.

GBP/USD re-takes 1.3000

The spot staged a solid comeback in the US last session, after the US dollar slumped across the board, following the release of the FOMC minutes, which failed to offer anything new and hence, disappointed markets. The treasury yields also followed suit amid an unimpressive Fed minutes release.

In today’s trading so far, cable broke a brief consolidative range to the upside and heads towards 1.30 handle, in response to fresh selling seen in the US dollar across the board, as 2-year treasury yields accelerate the declines. The USD index drops -0.12% and inches closer to multi-month troughs reached at 96.70 earlier this week.

Moreover, positive sentiment around the Asian indices amid no updates delivered by the Fed on faster pace of rate hikes, also added to the renewed upside in the major. Meanwhile, higher oil prices ahead of the crucial OPEC Vienna meeting, keeps the sentiment buoyed around the risk-currency GBP.

Focus now shifts towards the second estimate of the Q1 UK GDP due on the cards ahead of the US dataflow and Fedspeaks, which will provide fresh impetus to the GBP bulls.

GBP/USD Levels to consider            

Valeria Bednarik, Chief Analyst at FXStreet noted: “Short term, however, the pair is expected to extend to its decline, given that in the 4 hours chart, the price is below a bearish 20 SMA, whilst technical indicators have extended their declines within negative territory, down to fresh weekly lows. Support levels: 1.2950 1.2910 1.2880 Resistance levels: 1.3025 1.3060 1.3100.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD eases to 0.9900 on disappointing German data

EUR/USD eases to 0.9900 on disappointing German data

EUR/USD is paring back gains towards 0.9900 in early European hours, as German Factory Orders disappointed with -2.4% in August vs. -0.7% expected. The US dollar licks its wounds amid a better market mood. Eurozone data and ECB minutes are awaited. 

EUR/USD News

GBP/USD remains pressured towards 1.1300 amid UK rating downgrade

GBP/USD remains pressured towards 1.1300 amid UK rating downgrade

GBP/USD is reversing towards 1.1300, as investors digest Fitch Ratings downgrade to the UK sovereign ratings amid political and economic woes. The pair shrugs off a risk-on market profile and a broadly subdued US dollar. US data next of note. 

GBP/USD News

Gold poised to challenge September highs at $1,735

Gold poised to challenge September highs at $1,735

Gold price is attempting a bounce as US dollar holds lower ground with yields. Market remains upbeat despite a lack of clarity on the Fed rate hike outlook. XAU/USD eyes $1,735 on a sustained break above the 50 DMA barrier.

Gold News

Crypto.com price consolidates, forecasting a 22% rally for CRO holders

Crypto.com price consolidates, forecasting a 22% rally for CRO holders

Crypto.com price seems to have undone its breakout gains seen in the last week of September. This downtrend has morphed into a tight consolidation showing no volatility. 

Read more

Is the recent S&P 500 rally sustainable?

Is the recent S&P 500 rally sustainable?

Can we trust the recent rally? The market just rallied +5.7% in two trading days. Bulls argue that the rebound could push even higher as the start of Q3 earnings season starts up next week.

Read more

Forex MAJORS

Cryptocurrencies

Signatures