GBP/USD regains poise, eyes 1.2860 ahead of Carney

Dhwani Mehta FXStreet

After a brief phase of consolidation around 1.2815 levels almost throughout the Asian session, the GBP/USD pair picked-up pace and jumped higher to test three-week tops of 1.2858 reached a day before.

The positive bias seen around the spot is mainly driven by ongoing broad based US dollar weakness, as the USD bulls remained weighed down by the delay in the Healthcare bill vote. Meanwhile, the USD index keeps its range near the lowest levels since November last year, reached at 96.03.

The spot now remains poised for further upside, as the US dollar is expected to face fresh selling-wave on the European open, with the European traders dumping the buck in reaction to the delay in Senate vote on the US Healthcare plan.

Moreover, the pound may also remain underpinned ahead of the speech by the BOE Governor Carney, as he speaks again at the ECB Symposium later today, while markets digest latest comments by BOE board member Cuncliffe, expressing his concerns over a weaker pound and its impact on the inflation levels.

GBP/USD levels to consider

To the upside, the immediate resistance is the 1.2850 zone (psychological levels) followed 1.2870 (Jun 6 low) and then 1.2900 (zero figure). On the downside, support could be located at 1.2809/1.2800 (daily low/ round number), 1.2755/60 (Jun 26 high) and 1.2705 (Jun 26 low).

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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