GBP/USD within a narrow range around 1.2950

The Sterling is trading almost unchanged at the beginning of the week, taking GBP/USD to a narrow trading range in the mid-1.2900s.

GBP/USD focus on risk trends, NK

Following a test of the vicinity of the key barrier at 1.3000 the figure post-payrolls on Friday, fresh sellers along with a recovery of the greenback forced Cable to retrace some ground and is now looking to stabilize in the 1.2950 area.

Risk-off sentiment keeps weighing on the pair so far following nuke test news from North Korea, with GBP/JPY gapping down and prompting Cable to stay depressed for the time being.

In addition, market conditions are expected to remain thin in light of the inactivity in the US markets due to the Labor Day holiday.

In the UK data space, construction PMI is next on tap followed by the more relevant services PMI on Tuesday.

Further news around GBP cited speculative net shorts climbed to the highest level since early May during the week ended on August 29, according to the latest CFTC report.

GBP/USD levels to consider

As of writing the pair is up 0.03% at 1.2954 and a break above 1.2996 (high Sep.1) would pave the wave for a test of 1.3031 (high Aug.11) and then 1.3166 (high Aug.4). On the flip side, the next down barrier emerges at 1.2920 (21-day sma) seconded by 1.2893 (10-day sma) and finally 1.2851 (low Aug.31).