GBP/USD firmer, testing highs beyond 1.2900

The Sterling has started the week on a firm footing, now lifting GBP/USD to the area of daily highs above 1.2900 the figure.

GBP/USD bounces off 1.2870

After a brief test of lows near 1.2870 during overnight trading, Cable managed to regain some buying interest while Asian markets were still digesting Friday’s US non-farm payrolls figures (222K act.).

In the meantime, the pair is looking to consolidate in the lower end of the recent range following the rejection from late June tops in the 1.3030 region. Poor results from the UK data as of late plus some recovery in the greenback have also collaborated with the consolidative theme

Ahead in the day, there will be no activity in both US and UK calendars, leaving the attention to the broad risk appetite trends.

From the positioning view, GBP speculative net shorts have retreated to 6-week lows in the week ended on July 3, according to the latest CFTC report.

GBP/USD levels to consider

As of writing the pair is up 0.10% at 1.2904 facing the next hurdle at 1.2934 (10-day sma) followed by 1.2984 (high Jul.6) and finally 1.3032 (high Jun.30). On the flip side, a breach of 1.2876 (55-day sma) would open the door to 1.2864 (low Jul.7) and then 1.2862 (38.2% Fibo of 1.2587-1.3032).