GBP/USD off-lows, wavers around 20-DMA

GBP/USD continues to consolidate the post-US data led upside, although remains capped below the mid-point of 1.32 handle as we head into the early European trading.

GBP/USD re-takes 1.3250?

Currently, GBP/USD trades -0.05% lower at 1.3235, bouncing-off a brief dip to session lows at 1.3221 reached in early Asia. The cable keeps its recovery mode intact from post-BOE troughs struck at 1.3180, although the upside appears to have lost traction in Asia amid a lack of fresh economic drivers and thin trading, as most Asian markets remained closed today in observance of a market holiday.

Moreover, markets prefer to remain on the side-lines, still digesting the BOE outcome, as they await the European opening bells for fresh impetus. A spate of below estimates US macro releases weighed on the greenback yesterday and hence, lent support to the recovery in the cable from BOE-induced lows.

The BOE held Bank Rate at 0.25%, government bond purchases at £435bn and corporate bond purchases at up to £10bn, although sounded upbeat on the UK economic development in wake of a Brexit vote.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3279/85 (Sept 15 high/ 10-DMA), above which 1.3350 (psychological levels) would be tested. On the flip side, support is seen at 1.3200 (round number) below that at 1.3163 (50-DMA).