GBP/USD: Bulls regain poise, tests 1.3050

The GBP/USD pair stalled its corrective slide near 1.3020 levels, and from there regained its bullish momentum to print fresh daily tops at 1.3048 levels.

GBP/USD headed to 1.3100?

The spot staged a solid pullback amid renewed US dollar weakness seen across the board, as the European traders digest the latest dovish Fedspeaks, while ongoing headlines surrounding North Korea’s missile threat also spells risk-aversion, also keeps the sentiment around the greenback broadly undermined.

However, the bulls find it difficult to take-out the key resistances located near 1.3050 levels, as negative European equities combined with Brexit deadlock over the divorce bills continue to weigh down on the pound.

Meanwhile, a couple of downbeat UK macro news, in terms of the services and construction PMI reports, also continue to the keep the gains limited.

UK services PMI drops further in August

UK construction PMI surprises negatively in Aug, at yearly lows

Markets now eagerly await the US ISM services PMI release and Fed Beige Book for fresh trading impetus, as the UK docket remains absolutely data empty.

GBP/USD levels to consider             

Slobodan Drvenica at Windsor Brokers Ltd., explains: “Former key barriers at 1.3020/00 are now reverted to supports which should ideally contain, but deeper corrective dips on overbought daily studies cannot be ruled out. Next good supports lay at 1.2978 (30SMA) and 1.2960 (55SMA). Res: 1.3044; 1.3079; 1.3100; 1.3151 Sup: 1.3020; 1.3000; 1.2978; 1.2960.”