GBP/USD: Bulls continue to guard 1.2950 barrier

Cable’s renewed attempt to test 1.30 handle failed near 1.2990 levels once again, as the sellers continue to lurk at the last, sending the rate back towards the mid-point of 1.29 handle.

However, the bulls were rescued by a fresh sell-off in the EUR/GBP cross, after the common currency extended its post-Macron win profit-taking slide, prompting a minor-bounce in GBP/USD back to 1.2965 levels.

The tepid-bounce in the spot lacks momentum amid ongoing broad based US dollar strength, while negative European equities and subdued oil prices suggest moderate risk-aversion prevalent in the market, which could keep the upside attempts in check.

With the UK Halifax HPI data out of the way, focus now shifts towards the US LMCI data and Fedspeaks due later in the American session for further impetus.

GBP/USD Levels to consider            

A break above 1.2990 (7-week high) could lift the pair above 1.3016 (classic R3), beyond which a test of 1.3050 (psychological mark) is imminent. Conversely, a break below 1.2931 (10-DMA), leading to a subsequent break below 1.2900 (round figure) is likely to drag the pair towards testing its next support near 1.2848 20-DMA).