GBP/USD finds support near 1.2900

The Sterling has started the week on a weak footing, prompting GBP/USD to drop to the vicinity of the 1.2900 handle albeit recovering some ground afterwards.

GBP/USD stays near 7-month tops

Despite the so far negative start, the pair manages well to keep the trade in the area of multi-month tops above 1.2900 the figure, although receding some ground from last week’s tops at 1.2970.

The greenback seems to have regained some shine lost in past weeks today, putting the risk-associated universe under some downside pressure amidst thin trade conditions and a generalized low volatility due to the Labor Day holiday.

Nothing in terms of data releases in the UK docket today, whereas the ISM Manufacturing, Personal Income/Spending, inflation figures tracked by the PCE (Fed’s preferred gauge) and the speech by Treasury Secretary Steve Mnuchin are all due later in the NA session.

From the positioning view, GBP speculative net shorts have been trimmed to the lowest level since early March in the week to April 25, as per the latest CFTC report.

GBP/USD levels to consider

As of writing the pair is losing 0.22% at 1.2923 facing the immediate support at 1.2902 (low May 1) followed by 1.2884 (low Apr.28) and finally 1.2834 (low Apr.27). On the flip side, a breakout of 1.2970 (2017 high Apr.28) would aim for 1.3000 (psychological level) and then 1.3060 (high Sep.29 2016).