GBP/USD off session low, still in red at 1.3080 ahead of UK data

Haresh Menghani FXStreet

The GBP/USD pair dropping back to an immediate support near 1.3060-50 region before retracing few pips to currently trade with only marginal losses around 1.3080 region band ahead of second-tier economic data from UK.

The greenback remained on a stronger footing after recent hawkish rhetoric from various Fed officials has strengthened the case of an eventual Fed rate-hike action in the near-future. Moreover, Monday's inflation data, core PCE price index (Fed's preferred inflation gauge) provided an additional boost to the expectations and has extended support to the ongoing bullish sentiment surrounding the greenback.

Next on tap would be UK data that includes - Mortgage Approvals, M4 Money Supply, BoE Consumer Credit and Net Lending to Individuals. Later during US trading session, US consumer confidence data would be in focus ahead the keenly watched NFP data on Friday, which is known to infuse substantial volatility across global financial markets.

Technical levels to watch

Bulls would be disheartened if the pair fails to hold 1.3060-50 immediate support below which the downslide is likely to get extended immediately towards 1.3000 psychological mark. Meanwhile on the upside, any recovery momentum above 1.3100 handle might now confront immediate resistance near 1.3140 level, which if cleared is likely to strengthen the pair back towards 1.3200 handle.

Sell 57%

Buy 43%

Avg Sell Price 1.3152

Avg Buy Price 1.3296

Liquidity Distribution

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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