GBP/USD holding steady with minor gains, around mid-1.2900s

The GBP/USD pair traded with a mild positive bias through Asian session on Tuesday and reversed part of yesterday's corrective slide from the key 1.30 psychological mark.

Currently hovering around mid-1.2900s, the pair benefitted from a sharp rise in the British Retail Consortium Like-for-like Sales data for April 2017, coming-in at 5.6% y-o-y as compared to -1.0% in March. Adding to this, a subdued greenback price-action, with the key US Dollar Index holding steady around the 99.00 handle, also collaborated to the bid tone surrounding the major.

Further upside, however, remained capped amid growing prospects for an eventual Fed rate-hike action, as early as at its June meeting, which is being reaffirmed by continuous up-surge in the US treasury bond yields.

Meanwhile, last week's upbeat PMI reports underscored a solid British economy, despite continuing jitters over impending Brexit negotiations, and hence, the pair defying broad based greenback strength and extending its near-term upward trajectory remains a distinct possibility.

Later during the NA session, the release of JOLTS job openings data from the US would be looked upon for some trading impetus. However, major focus would be on this week's major event risk - the BoE's Super-Thursday, which should assist investors to determine the pair's next leg of directional move.

Technical levels to watch

Immediate resistance is pegged near 1.2980 level, above which the pair is likely to surpass the 1.30 handle and head towards testing its next important hurdle near 1.3040 region. On the downside, weakness below 1.2930 level (yesterday's low) is likely to find support near the 1.2900 handle, which if broken would negate any near-term bullish bias and trigger a near-term corrective slide.

Share: Feed news

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.