GBP/USD rally stalls near 1.30

The risk-on rally triggered by Trump’s poor performance at the Presidential debate helped GBP/USD recover losses, but failed to secure a break above 1.30 handle.

Rejected at 1.2992

The spot recovered from the low of 1.2949 but ran into offers at 1.2992 and fell back to trade largely unchanged on the day around 1.2973 levels. Risk assets were on the back foot earlier today as it was feared Trump may gain an upper hand.

However, Clinton gained an upper hand on topics of economy and security, thus triggering a risk-on rally which helped risk assets rally. But the gains were capped near 1.30 on renewed banking concerns in Europe.

GBP/USD Technical Levels

A break above 1.30 (5-DMA) would open doors for test of supply around 10-DMA level of 1.3048. Further gains could run into wall of support at 1.3087 (61.8% of 1.2865-1.3445). On the other hand, a breakdown of support at 1.2945 (Sep 21 low) would expose 1.2915 (Sep 23 low) and 1.29 levels.