GBP/USD bounces off lows, approaches 1.2750

After bottoming out near 1.2720 during early trade, GBP/USD has now pared losses and is hovering over the 1.2750 area, or session tops, ahead of the European open.

GBP/USD focus on Carney, Brexit

Cable is recovering part of yesterday’s pullback, finding quite decent support in the 1.2720 region while gains failed to extend further north of the 1.2800 handle for the time being.

While Tories continue their talks with DUP in order to form a minority government, political concerns appear somewhat alleviated as of late, as market participants shifted their focus to the start of the Brexit negotiations, which remains poised to be the main driver for the pair’s price action in the near to medium terms.

Absent releases in the UK docket, the bulk of the attention should be on the speech by Governor M.Carney at Mansion House later in the European morning.

Across the pond, speeches by Boston Fed E.Rosengren (2019 voter, hawkish), Vice Chiar S.Fischer (permanent voter, centrist) and Dallas Fed R.Kaplan (voter, hawkish) should keep the attention on the buck.

GBP/USD levels to consider

As of writing the pair is up 0.05% at 1.2744 facing the next resistance at 1.2814 (high Jun.19) followed by 1.2836 (20-day sma) and then 1.2979 (high Jun.8). On the downside, a breakdown of 1.2688 (low Jun.15) would open the door to 1.2633 (100-day sma) and finally 1.2632 (low Jun.9).