GBP/USD moves to daily highs near 1.2980

Pablo Piovano FXStreet

The British Pound is trading on a firm note on Wednesday, now lifting GBP/USD to the area of session tops in the vicinity of 1.2980.

GBP/USD attention to FOMC

Cable is reverting a negative start of the week so far, posting moderate gains in the upper-1.2900s after retreating Monday and Tuesday, all amidst some nervousness among traders after agency Moody's downgraded China’s credit rating.

GBP managed to leave behind the downside pressure coming from the Manchester blasts and apparent effervescence following discussions between the UK and EU over the ‘divorce bill’, which according to EU officials should be around €100 billion.

Adding to GBP resilience, the speculative community continued to scale back its net shorts positions in the week to May 16 according to the latest CFTC report.

Nothing scheduled data wise in the UK will leave all the attention to the release of the FOMC minutes later in the NA session, with market consensus pointing to a somewhat hawkish tone from the Committee, emphasizing the robust labour market and the general pace of the US economy.

GBP/USD levels to consider

As of writing the pair is gaining 0.12% at 1.2974 and a breakout of 1.3036 (high May 23) would aim for 1.3051 (2017 high May 18) and finally 1.3125 (high Sep.22 2016). On the other hand, the next support lines up at 1.2975 (low May 22) followed by 1.2937 (20-day sma ) and finally 1.2889 (low May 18).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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