GBP/USD: Will it conquer 1.30 handle on an uptick in UK wages?

Dhwani Mehta FXStreet

The bulls regain poise in mid-Asia, prompting a fresh buying-wave in the GBP/USD pair, in a bid to regain 1.2950 barrier amid persisting broad based US dollar weakness and risk-off market profile.

GBP/USD bounces-off 20-DMA at 1.2913

The major is trying to break higher from the overnight consolidative mode above 20-DMA support, finally taking advantage of ongoing weakness in the US dollar against its main competitors, in the wake of the political uncertainty surrounding the US President Trump.

Headlines hit the wires earlier on the day regarding the Comey memo being subpoenaed by the House Oversight Committee. Trump asked then-FBI Director James Comey to end a probe into Trump's former national security advisor Flynn.

Moreover, investors remain uncertain over the US President Trump’s ability to push through reforms and stimulus programs, as promised by him during his election campaigns.

Meanwhile, the pound also gains momentum as markets remain expectant of an increase in the hourly earnings data due to be reported alongside the employment report in the session ahead.

However, it remains to be seen if the spot can regain 1.2950 levels, as risk-off remains the underlying theme so far this session, which could weigh down on the risk-currency GBP.

GBP/USD Levels to consider

A break above 1.2940 (May 15 high) could lift the pair above1.2961 (May 9 high), beyond which a test of 1.2990 (7-week high) is imminent. Conversely, a break below 1.2872 (May 15 low), leading to a subsequent break below 1.2842/29 (May 12 & 4 low) is likely to drag the pair towards testing its next support near 1.2800 (key support).

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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