GBP/USD wavers above 100-DMA support amid notable USD demand

• USD rules the roost 
• Eyes on widening US-UK yield spread
• US Q3 GDP holds the key

Having found fresh bids once again near 100-DMA support at 1.3114, the GBP/USD pair attempted a tepid bounce in Asia, only to meet fresh supply near 1.3140 levels and now hovers below the last.

GBP/USD: Risks remain to the downside

The spot extends its bearish bias into early European trading and remains poised for further downside, as the USD buying remains unabated across the board amid widening US-UK yield differential. The US Treasury yields trade firmer across the horizon amid increased hopes of Taylor being the next Fed Chair after Politico reported that Yellen is out the Fed Chair race. Taylor is widely considered a hawk on the US interest rates outlook.

Meanwhile, the pound also continues to suffer from looming uncertainty over the Brexit negotiations and awful UK CBI realized sales data, which could dampen expectations of a BOE rate hike next week. Later today, the pair awaits the US Q3 GDP data for fresh impetus on the prices, in absence of macro news from the UK docket.

GBP/USD Technical View

Jim Langlands at FX Charts offers key technical levels: “As far as Cable is concerned, stay neutral as the momentum indicators are generally mixed/flat, although the 4 hourlies are possibly rolling over to head a little lower and we may just see Sterling follow the Euro around today.”