GBP/USD tumbles to lows near 1.2930

The pick up in the demand for the greenback is pushing GBP/USD to the area of daily lows in the 1.2940/30 band.

GBP/USD now looks to FOMC

Cable is now accelerating the weekly correction lower, testing 3-day lows in the 1.2930 region and shedding at the same time over a cent since last week’s multi-month peaks in the mid-1.3000s.

Absent releases and relevant events in the UK docket, market participants should closely follow the release of the FOMC minutes later in the NA session. Consensus amongst investors expects the Committee to deliver a hawkish message, mainly focused on the strength of the labour market and the robust pace of the economic recovery.

Additional interest will surely be on any discussion on the likely timing of the Fed’s balance sheet and reinvesting policy.

Somewhat limiting GBP weakness, the speculative community continued to scale back its net shorts positions in the week to May 16 according to the latest CFTC report.

GBP/USD levels to consider

As of writing the pair is losing 0.13% at 1.2942 facing the immediate support at 1.2889 (low May 18) followed by 1.2842 (low May 12) and finally 1.2829 (low May 4). On the flip side, a breakout of 1.3036 (high May 23) would aim for 1.3051 (2017 high May 18) and finally 1.3125 (high Sep.22 2016).