GBP/USD rejected from tops, back near 1.2830

Pablo Piovano FXStreet

The Sterling has eroded Wednesday’s losses and is now pushing GBP/USD to the 1.2830/40 band, or daily tops.

GBP/USD up on USD-selling

Once again, the selling pressure around the greenback is helping the risk-associated space to move forward, with Cable trading just pips lower from session highs near 1.2840, while Monday’s multi-month peaks above 1.2900 the figure continue to cap gains for the time being.

GBP stays bid amidst the continuation of the USD-downside and upbeat sentiment following the recent announcement by UK’s PM Theresa May to call snap elections on June 8.

The implications of early elections, however, remains pretty unclear although market participants keep leaning towards the view that it should be positive for the upcoming Brexit negotiations and could favour a ‘soft Brexit’ scenario.

In the data space, Governor M.Carney is due to speak at the Institute of International Finance (Washington) later in the European evening, while Initial Claims and the Philly Fed Manufacturing Index for the month of April are due in the US docket.

GBP/USD levels to consider

As of writing the pair is up 0.41% at 1.2828 facing the next resistance at 1.2904 (high Apr.18) followed by 1.3125 (high Sep.22 2016) and then 1.3279 (high Sep.15). On the other hand, a breakdown of 1.2766 (low Apr.19) would expose 1.2621 (200-day sma) and finally 1.2534 (20-day sma).

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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