The GBP/USD pair eroded some of its early gains and retreated over 25-pips from session tops to currently trade around 1.2820-25 band.
The pair struggled to build on to its momentum beyond mid-1.2800s, despite of renewed greenback selling interest, with the key US Dollar Index dropping to fresh monthly lows during mid-European session. The pull-back lacked any fundamental drivers and could be attributed to some cross-driven position readjustment.
Meanwhile, possibilities of some long-unwinding, in anticipation of possible dovish comments by BOE Governor Mark Carney, could also be one of the factors weighing on the major.
However, sentiment surrounding the British Pound remains positive in wake of Tuesday's announcement by the UK PM Theresa May to call for a snap election on June 8 and thus, any retracement would now be looked upon as buying opportunity.
• GBP/USD still targets 1.2950 – UOB
Today's US economic docket features the release of usual weekly jobless claims and Philly Fed manufacturing index, which would be looked upon for some short-term trading impetus ahead of scheduled speeches by the BOE Governor Mark Carney and the US Treasury Secretary Steven Mnuchin later during the NY session.
Technical levels to watch
A follow through retracement is likely to find immediate support near the 1.2800 handle, which is closely followed by 1.2775-70 support (yesterday's low), below which the pair is likely to extend the corrective slide towards 1.2715 level.
On the upside, 1.2850-60 zone now seems to have emerged as immediate hurdle, which if cleared could lift the pair back towards the 1.2900 handle. Any further up-move beyond the said handle is likely to be capped at a horizontal resistance near 1.2960-65 zone.
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.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.