GBP/USD: Upside remains capped below 1.2940, awaits US GDP

The GBP/USD pair extends its Asian consolidation box into early Europe, but the bulls manage to hold above 1.2927 handle amid improved risk sentiment, as the geopolitical tensions over North Korea missile launches recede.

GBP/USD eyes US GDP, ADP for fresh impetus

The spot remains better bid so far this session, having found some solid bids at 1.2915 levels, which coincides with the confluence zone of 5 and 20-DMA. The steady Asian recovery in the GBP/USD pair lost steam, after the greenback regained momentum and resumed yesterday’s rebound against its major rivals amid renewed strength seen around Treasury yields, as fading North Korea fears lift the overall market sentiment.

Moreover, the UK’s third round of Brexit negotiations with the EU alongside the UK PM May’s visit to Japan also keeps the GBP traders on the edge. Meanwhile, the latest reports that the US President Trump is expected lay out his vision for the tax plan later today, also adds to the increased nervousness.

The major now eagerly awaits the UK net lending to individuals data, followed by the US ADP and Q2 GDP figures for fresh momentum.

GBP/USD levels to consider             

Haresh Menghani, Analyst at FXStreet writes, “…a subsequent move above yesterday’s swing high near 1.2980 level, should now assist the pair surpass the key 1.30 psychological mark and head towards testing its next resistance near the 1.3030-35 region. On the flip side, 1.2920-10 area might continue to act as immediate support, which if broken might turn the pair vulnerable to head back towards testing 1.2870-65 support area.”