GBP/USD claims the 1.32 level on trade headlines, bulls looking to maintain control

The Sterling is continuing to catch some lift on positive trade headlines from Wednesday, and a thin calendar for Thursday could see risk appetite continue through the day.
Mid-tier data due in the upcoming US session could see a revival of Dollar-buying if the numbers beat expectations.

Joshua Gibson FXStreet

The GBP/USD is trading into the 1.3200 major level after catching a mild boost in the late Wednesday session, with risk assets driving higher and the US Dollar facing a mild sell-off in the broader markets following positive trade talks between the US' President Trump and the European Union's Jean-Claude Juncker.

Wednesday was a data-light day for the GBP, with only the CBI Distributive Trades Survey releasing for July, though the indicator did manage to beat expectations, coming in at 20% versus the forecast 15%, but still below the previous reading of 32%. Thursday is also devoid of any meaningful data for the UK, but some volatility may be seen when the US Durable Goods Orders for June drop at 12:30 GMT, which are expected to improve from -0.6% to 3.0%.

Trade headlines are back on the front burner once again after the US and the EU made a joint statement late on Wednesday, with both sides appearing to be willing to avert a trade war, though specific details remain light and specific plans of action are yet to materialize, but markets are taking the opportunity to swing to into the risk-on camp, giving GBP buyers a much-needed breather.

GBP/USD Levels to watch

According to FXStreet's own Valeria Bednarik, Wednesday's bump higher gives the GBP/USD a chance to start marking in bullish gains: "the technical picture shows an increasing upward potential, despite the pair holds within familiar levels, as in the 4 hours chart, the pair bounced again from a bullish 20 SMA, currently at 1.3135, while the Momentum indicator holds around its 100 level barely turning higher, but the RSI seems to be picking up, currently at 60. The advance could continue with a break above the 1.3200 figure, with scope them for an approach to the 1.3300 figure."

Support levels: 1.3135 1.3090 1.3045

Resistance levels: 1.3200 1.3240 1.3280

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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