GBP/USD flirting with session lows near 1.3010, UK GDP eyed

The Sterling is in corrective mode on Wednesday, now taking GBP/USD to the lower end of the daily range in the 1.3020/10 band.

GBP/USD offered ahead of data, FOMC

Cable is retreating for the second consecutive session so far today, fading yesterday’s spike to the vicinity of 1.3090 and opening the door at the same time for a potential test of the critical support at 1.3000 the figure in case the selling bias accelerates.

Spot is grinding lower in response to a slow but relentless recovery in the greenback, pushing the US Dollar Index to its third straight session with gains so far and on the verge of regaining the key barrier at 94.00 the figure.

Looking ahead, advanced figures of UK’s GDP for the April-June period will be the salient point this morning, while all the attention will be clustered around the FOMC meeting later in the NA session.

Market consensus expects the Fed to keep its Fed Funds target range at 1.00%-1.25%, although the statement could be tilted to the dovish side on a potential more cautious message on inflation.

GBP/USD levels to consider

As of writing the pair is losing 0.07% at 1.3018 facing the immediate support at 1.2999 (23.6% Fibo of 1.2587-1.3127) seconded by 1.2972 (21-day sma) and finally 1.2930 (low Jul.20). On the flip side, a break above 1.3084 (high Jul.25) would open the door to 1.3115 (high Jul.14) and finally 1.3127 (2017 high Jul.18).