•  Weaker USD/incoming positive UK data remains supportive of the ongoing up-move.
   •  Carney’s upbeat comments provide an additional boost in the last hour.
   •  Traders now eye US economic data and FOMC meeting minutes for some fresh impetus.

After an early Asian session dip to 1.3210 level, the GBP/USD pair regained positive traction and touched a fresh 1-1/2 week high in the last hour.

The pair built on last week's goodish recovery move from fresh YTD lows and has so far, held with a positive bias for the fourth session in the previous five. The incoming positive UK economic data, combined with the ongoing US Dollar retracement slide continued driving the pair higher and helped build on its momentum beyond the 1.3200 handle.

The positive momentum got an additional boost after the BoE Governor Mark Carney, during a scheduled speech in Newcastle, talked up inflationary expectations and also said that a tighter monetary policy is needed. Carney's comments lifted BoE rate hike expectations for August and provided a minor lift to the British Pound.

The up-move, however, lacked any strong follow-through as investors might now wait to see the incoming UK macro data, scheduled over the course of this month, in order solidify rate hike expectations and before committing to any further appreciating move for the major.

In the meantime, today's US economic releases - ADP report and ISM non-manufacturing PMI, along with the latest FOMC meeting minutes might also play a key role in determining the pair's near-term trajectory. 

Technical levels to watch

Immediate resistance is pegged near the 1.3275-80 region, above which the pair is likely to surpass the 1.3300 handle and aim towards testing the 1.3335-40 supply zone. 

On the flip side, the 1.3200 handle now seems to protect the immediate downside, which if broken might drag the pair back towards 1.3140 strong horizontal support en-route the 1.3100 handle.
 

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

AUD/USD struggling to retain the 0.6900 mark

AUD/USD struggling to retain the 0.6900 mark

Wall Street plunged on Tuesday, dragging AUD/USD lower as the greenback benefited from the risk-averse sentiment. Softening gold prices weighed further on the aussie, now approaching its June lows. Australian Retail Sales in the docket.

AUD/USD News

EUR/USD nears 1.0500 amid inflation and recession concerns

EUR/USD nears 1.0500 amid inflation and recession concerns

The EUR/USD pair bounced modestly from a Tuesday’s low of 1.0502, maintaining a near-term bearish bias amid concerns related to economic growth and central banks’ actions to tame inflation. US core PCE inflation and German CPI coming up next.

EUR/USD News

Gold: Can the dollar finally win the battle?

Gold: Can the dollar finally win the battle?

XAUUSD is technically bearish and could soon lose the $1,800 level. Gold retains the sour tone on Tuesday, now trading at around $1,823.00 a troy ounce. The dollar seesawed between gains and losses, turning higher after the release of discouraging US data.

Gold News

Summertime bull-run a multi-year bear market?

Summertime bull-run a multi-year bear market?

The cryptocurrency market is in a historical pivotal moment. One good trade could replenish all losses, while one bad trade could be catastrophic.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures