GBP/USD: stuck around 'stop city' and 1.32 the figure

Currently, GBP/USD is trading at 1.3201, down -0.01% on the day, having posted a daily high at 1.3209 and low at 1.3200.

GBP/USD opened Asia at 1.3143, while it was bid on a lower greenback. Then, the pound rallied to a high of 1.3203 on better than expected UK output data with August construction output +0.6% vs flat f/c. Mfg output +0.4% vs +0.2% f/c. Annualized industrial output  arrived +1.6% vs +0.8% f/c. However, the trade data tempered GBP gains.

UK: Should I stay or should I go now? – Nomura

The fifth round of Brexit talks was taking place on Tuesday, making for all eyes on the headlines while 1.3220 was the top for the London session where strong offers are located on the back of the previous break lower on the 5th October.  

GBP: Politics breaking the cycle – HSBC

There were no market-moving headlines from the Brexit talks and sterling's upside was underpinned only by better sentiment for May's leadership and BoE hikes along with a weaker greenback while a stronger euro drove the DXY lower. Sterling rallied to 1.3227, squeezing shorts at the figure but stalling ahead of 1.3232 where the 200-DMA is located.  Markets now await the EU summit next week and the outcome of September's CPI figures and the UK labour market report due on the 17th and 18th October. 

GBP/USD levels

GBP/USD still bearish, scope for a test of 1.3000 – UOB

The pair's recovery extended up to the 50% retracement of last week's slide before easing modestly, but overall maintains a positive tone heading into the Asian opening with the price near the mentioned Fibonacci level, and far above its moving average, whilst technical indicators have lost their upward strength, but hold within bullish territory, overall favoring an upward movement ahead. The pair has a major dynamic resistance in the way, the 200 EMA at 1.3230, and gains beyond it will likely keep the Pound afloat for the rest of this Wednesday.