GBP/USD attempts recovery from Friday’s sell-off

The GBP/USD pair is seen making minor-recovery attempts on 1.30 handle, as dust settles over UK FinMin Hammond’s remarks-led massive sell-off witnessed last Friday.

GBP/USD eyes FOMC for fresh direction

Currently, GBP/USD trades 0.28% higher at fresh session highs of 1.3039, having regained momentum above 1.30 handle. The cable is seen on a steady recovery path in Asia this Monday, after having reached fresh four-week troughs last Friday.

On Friday, the major eroded more-than 250pips, with the sell-off triggered by the comments from the UK’s finance minister Hammond. Mr. Hammond noted that he is prepared to accept that Britain may have to give up the UK’s access to European Union’s (EU) single market as also UK banks’ crucial access to clients on the continent, in order to achieve the immigration restrictions that voters have demanded .

Focus remains on the FOMC statement due out on Wednesday amid a data-light UK economic calendar in the week ahead.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3044 (daily R3), above which 1.3104 (5-DMA) would be tested. On the flip side, support is seen at 1.2992 (multi-week lows) below that at 1.2950 (psychological levels).