GBP/USD stuck in range near 1.3280, awaits US data

Dhwani Mehta FXStreet

The GBP/USD pair is seen extending its overnight consolidative mode into Europe, as the bulls take a breather from the recent upsurge, fuelled by renewed optimism over the Brexit deal.

GBP/USD: 1.3300 on sight

Amid broad based US dollar weakness and reports of the EU offering a helping hand to the UK, the spot keeps its recent winning streak intact, now bidding up for a break above 1.33 handle.

The greenback extends the declines across its main competitors on the back of dovish FOMC minutes and US fiscal reforms, while yesterday’s Handelsblatt headlines cited that the EU's chief Brexit negotiator, Michel Barnier, could offer the UK a 2-year transition stay in the EU market.

More so, the recent series of upbeat UK fundamentals combined with a Nov BOE rate hike also remains GBP-supportive. However, further upside in the major remains dependent on the incoming US CPI and retail sales figures, which could help determine the next direction on the greenback.

GBP/USD Technical View

Haresh Menghani, Analyst at FXStreet noted: “Technically, the pair is now facing some resistance near the 1.3300 handle. Hence, a clear break through the mentioned hurdle is likely to accelerate the up-move towards 1.3345-50 resistance, representing 50% Fibonacci retracement level of the pair's recent fall. On the flip side, previous resistance, near the 1.3235 region, now becomes immediate support to defend, which if broken could accelerate the slide back towards the 1.3200 handle en-route 23.6% Fibonacci retracement level support near 1.3175 area.”

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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