The bears take a breather in the Asian session, allowing the GBP/USD pair to extend the overnight sight trend, as investors now brace for the big risk events due later today.
GBP/USD: All eyes on UK Q2 GDP and Fed
The spot is oscillating back and forth in a tight trading range so far this session, with the bulls lacking any impetus to attempt a minor-recovery, despite a broadly subdued US dollar and risk-friendly market environment. The higher-yielding GBP tends to benefit from better risk appetite, now prevalent amid higher oil and stock prices.
The greenback remains largely depressed against its major rivals, as the US Senate Republican plan to repeal and replace Obamacare failed. Meanwhile, a cautious tone prevailed around the buck ahead of the FOMC policy decision, which is widely expected to be a non-event, disappointing the hawks once again.
Ahead of the Fed outcome, the UK Q2 prelim GDP figures is due on the cards, which would keep the GBP traders. The preliminary figures for the second quarter UK GDP are expected to have accelerated to 0.3% q/q versus 0.2% seen last, while on annualized basis, the pace of expansion seems to have eased to 1.7% versus 2.0%.
GBP/USD levels to consider
To the upside, resistances are aligned at 1.3053/57 (Jul 19 & 24 high), 1.3100 (round figure) and 1.3150 (psychological levels). On the flipside, 1.2977 (20-DMA) guards the next support of 1.2885 (50-DMA), below which 100-DMA support at 1.2835 lie.
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