GBP/USD looking to close bearish opening gap?

Dhwani Mehta FXStreet

The bears appear to take a breather during mid-Asia, allowing a minor-recovery in the GBP/USD pair back towards the mid-point of 1.29 handle.

GBP/USD awaits UK data for fresh impetus

Currently, GBP/USD moves away from five-day lows and attempts a tepid-bounce, in a bid to fill in the bearish opening gap. At the time of writing, GBP/USD drops -0.26% to 1.2944, recovering from a steep drop to 1.2919 levels.

The GBP/USD extended its ongoing bearish momentum and fell sharply, as the pound was slammed on renewed Brexit fears, following British PM May’s latest comments. May noted in her Tory party conference that the UK will begin the formal Brexit negotiation process by the end of March 2017 and that the UK looks set to leave the EU by summer 2019.

However, the losses remained capped amid a risk-friendly environment, in response to higher Asian equities as Deutsche bank-related concerns ease. Next of note for the major remains the UK manufacturing PMI data ahead of the US ISM manufacturing report due later in the NA session.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.2967 (5-DMA), above which 1.2986 (10-DMA) and 1.3000 (round figure) would be tested. On the flip side, support is seen at 1.2914 (Sept 26 low) below that at 1.2900 (key support) and at 1.2872/63 (mid-Aug lows).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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