The GBP/USD pair extends its bearish consolidation phase into a third day today, with the bulls having faced stiff resistances once again 1.29 handle.
GBP/USD: 1.2930 still on sight?
The rebound in Cable lost steam post-European open, as the European stocks slumped amid Barcelona Terror Attack led risk-averse market condition, while renewed concerns over Trump fulfilling his political agenda also spooked market further. The pound tends to suffer amid market unrest and panic as it is widely considered a higher-yielding currency.
However, the latest move lower remains limited amid ongoing weakness seen around the US dollar against its main competitors, as sentiment continues to remain undermined by the US political jitters. The USD index drops -0.21% to 93.44 levels, with the upside limited by 93.60 levels.
Focus now shifts towards the only relevant economic release in the US prelim UoM consumer sentiment data, which will be reported ahead of the Fedspeak by the FOMC member Kaplan.
GBP/USD levels to consider
Valeria Bednarik, Chief Analyst at FXStreet noted: “From a technical point of view, and according to the 4 hours chart, the pair is standing a few pips above a bearish 20 SMA, while technical indicators aim higher within neutral territory, supporting some short-term upward extension on a break above 1.2920, the immediate resistance, and towards 1.2965. The mentioned 20 SMA is the immediate support at 1.2880, with a downward acceleration through the level favouring a test of the weekly low of 1.2841, en route to 1.2790.”
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