GBP/USD extends struggle below 1.3100 ahead of US Q2 GDP

The offered tone behind the US dollar weakened further in early Europe, providing fresh impetus to the recovery in GBP/USD from near 1.3060 region.

GBP/USD finds buyers again at 1.3070

The GBP/USD pair extends its side-trend into Europe, however, ran through fresh bids over the last hour amid renewed weakness in the US dollar against its main competitors. The greenback stalled its broad recovery triggered by stronger US durable goods data and resumed its post-FOMC sell-off, as Treasury yields came under fresh selling pressure amid persisting risk-off sentiment.

The bulls continue to struggle below 1.31 handle, and further upside now remains conditional on an improvement in risk condition, which could offer fresh lift to the risk currency GBP. Risk-off remained at full steam in Asia, as the Asian indices slumped on Wall Street Tech sell-off, while oil prices also ranged lower.

Next of relevance for the major remains the US dataflow, with the key Q2 GDP data slated for release in the NA session. In the meantime, the spot will get influenced by risk trends and USD dynamics in absence of economic drivers from the UK docket.

GBP/USD levels to consider             

“A convincing break through the mentioned (1.3025-20 region) support could accelerate the slide towards 1.2960-55 intermediate horizontal support before the pair eventually aims towards testing the 1.2900 round figure mark. On the upside, the 1.3100 handle now seems to act as immediate hurdle, above which the pair could rise to 1.3125 intermediate resistance en-route mid-1.3100s, Haresh Menghani, Analyst at FXStreet explains.