GBP/USD sits at fresh 10-month tops near 1.3150, US data in focus

Dhwani Mehta FXStreet

Having clocked fresh ten-month highs of 1.3157 earlier today, the GBP/USD pair eased slightly and entered a phase d of upside consolidation, as the bulls await fresh impetus for the next push higher.

GBP/USD trades at the highest levels since Sept 2016

The latest leg down in the spot can be mainly attributed to a pause in the USD selling across the board, as the bears take a breather after the Fed induced sell-off. The FOMC decision disappointed the hawks as it turned out to be less hawkish, in the wake of a softer tone on inflation that suggested gradual rate hikes on the cards.

Meanwhile, the GBP markets remain little impressed by in-line with expectations UK Q2 preliminary GDP figures, as Brexit uncertainty continue to weigh. Hence, investors remain skeptical over the pullback from 1.2930 levels.

UK Q2 2017 prelim GDP rises to 0.3%, bang on expectations

However, the major could regain momentum and head further towards 1.32 handle, as the European markets hit their desks and react to the FOMC verdict, which could trigger a fresh USD selling across the board.

On the data-front, the UK docket offers the CBI realized sales data followed by a host of US macro news, including the durable goods and jobless claims data.

GBP/USD levels to consider

“GBP/USD is positive. GBP/USD has stabilized ahead of its near term uptrend, currently at 1.2974 and now broken to new highs, we will assume that it is reasserting its upmove. The break above 1.3060 targets the 1.3446 September high. It has a near term uptrend at 1.2974 and 20 day ma at 1.2986, while above here it is bid,” Karen Jones, Analyst at Commerzbank notes.

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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