GBP/USD flirting with highs above 1.3000

The Sterling keeps its buoyancy intact on Tuesday, now lifting GBP/USD to challenge daily tops above the psychological 1.3000 handle.

GBP/USD attention to risk trends

Spot has been trading on a firm fashion following a wave of risk-on sentiment after market participants have considered US presidential candidate Secretary H.Clinton as winner at yesterday’s debate vs. businessman D.Trump

In the meantime, the pair is advancing for the second consecutive session, coming up from Monday’s lows in the vicinity of 1.2910 and with gains still capped around the 1.3000 neighbourhood, today’s tops.

On the UK’s data front, Distributive Trades Surveys by CBI is only due, while across the pond the calendar looks more interesting: S&P/Case-Shiller index, Markit’s Services PMI, CB’s Consumer Confidence and the speech by FOMC’s VP S.Fischer.

In opinion of Carol Harmer, Founder of Charmer Trading Academy, “Again we held that 1.2930 uptrend line.... putting us long once more...we do need however to break above 1.3005 to negate any further pressure...If we can do that there is a good chance we can trade higher and take out the 1.3050 resistance and be on our way to 1.3077/90 and even 1.3121”

GBP/USD levels to consider

As of writing the pair is advancing 0.22% at 1.3004 facing the next resistance at 1.3125 (high Sep.22) followed by 1.3447 (high Sep.6) and finally 1.3570 (100-day sma). On the other hand, a breach of 1.2912 (low Sep.23) would open the door to 1.2863 (low Aug.15) and then 1.2796 (2016 low Jul.6).