The GBP/USD pair managed to move further away from five-week lows reached at 1.2829 last Friday, although remains capped below 1.29 handle amid moderate risk-aversion.
GBP/USD: Q2 UK GDP estimate in focus
Despite several recovery attempts, the GBP/USD pair remains on the back foot so far this session, as renewed optimism seen around the US dollar on Bannon’s resignation continues to cap the upside. The USD index remains better bid around 93.40, looking to regain 93.50 levels.
Moreover, persisting risk-off trades amid fresh warning issued by North Korea of a nuclear war, in response to the US military drills with South Korea, took the wind out of Cable’s recovery. The pound tends to suffer amid market unrest and panic as it is widely considered as a higher-yielding currency.
From a wider perspective, the spot extends its bearish consolidation phase into a fourth day, as the sentiment around the pound remains undermined, in the wake of BOE Carney’s less hawkish take on the interest rates outlook, after the inflation figures came in below estimates for two months in a row.
All eyes now remain on the second estimate of the UK’s Q2 GDP and US durable goods data due later this week for fresh direction on the major. Meanwhile, Yellen’s speech at the Jackson Hole Symposium will steal the limelight this week.
GBP/USD levels to consider
Valeria Bednarik, Chief Analyst at FXStreet noted: “In the 4 hours chart, the technical picture is neutral-to-bearish with the pair stuck around a bearish 20 SMA, the Momentum indicator heading nowhere around its 100 level, and the RSI indicator heading modestly south around 42. The pair bottomed for the week at 1.2831, the immediate short-term support for this Monday. Support levels: 1.2830 1.2795 1.2760 Resistance levels: 1.2895 1.2930 1.2965.”
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