GBP/USD: Will buyers retain control above 1.30 ahead of a Big week?

Dhwani Mehta FXStreet

The GBP/USD pair maintained its last week’s recovery mode in the Asian trades this Monday, although struggles to extend gains above 1.30 handle, as the bulls turn cautious ahead of the key risk events lined up for release later this week.

GBP/USD: Brexit jitters continue to weigh

The spot caught a fresh bid-wave in Asia opening trades, and from there resumed the recovery from last week’s sharp drop to 1.2930 levels, despite widespread risk-aversion and latest IMF’s World Economic Outlook report release, which showed that the Washington-based cut its 2017 growth forecasts for the UK economy, in the wake of the Brexit issue.

The latest leg up in the major is largely on the back of renewed USD selling, as the latest US political saga over Trump’s Presidency continue to haunt the US currency.

Looking ahead, Cable will continue to get influenced by the risk trends and USD dynamics, as attention shifts towards the US consumer confidence, UK GDP figures and FOMC decision for fresh impetus on the spot.

Meanwhile, the US Markit manufacturing and services PMI data, followed by the existing home sales release will keep the US traders busy in the NA session today.

GBP/USD levels to consider

To the upside, resistances are aligned at 1.3038/53 (Jul 20 & 19 high), 1.3100 (round figure) and 1.3150 (psychological levels). On the flipside, 1.2971 (20-DMA) guards the next support of 1.2876 (50-DMA), below which 100-DMA support at 1.2824 lie.

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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