GBP/USD losing the grip, back below 1.3100

The Sterling is now surrendering part of its initial gains vs. the greenback, sending GBP/USD back to sub-1.3100 levels.

GBP/USD attention to data

The pair is posting gains for the first time after fourth consecutive pullbacks so far, managing to retake the 1.3100 handle amidst a pause in the ongoing USD-rally.

Speculations on a potential rate hike by the Federal Reserve in the next months have been weighing on the risk-associated universe since last Friday, prompting spot to recede from last week’s tops in the boundaries of 1.3300 the figure.

Absent releases in the UK economy, the focus of attention will be on the ADP report, with consensus expecting the US private sector to have added 175K jobs during August.

GBP/USD levels to consider

As of writing the pair is gaining 0.09% at 1.3092 and a breakout of 1.3200 (resistance trend line off July’s high) would open the door to 1.3281 (high Aug.23) and then 1.3321 (23.6% of the post-Brexit down move). On the other hand, the immediate support lines up at 1.3000 (psychological level) followed by 1.2863 (low Aug.15) and finally 1.2849 (low Jul.11).