GBP/USD testing session highs near 1.2960

After yesterday’s drop to the boundaries of 1.2900 the figure, GBP/USD has managed to regain some buying interest and is now probing the area of daily tops in the 1.2950/60 band.

GBP/USD up on USD-selling

The greenback is giving away some ground after a positive start of the week, allowing GBP and the rest of the risk-associated peers to recover part of the recent pullback.

Despite the choppy performance so far this week, Cable found decent support around the 1.2900 neighbourhood, although a test and subsequent breakout of the psychological 1.3000 handle seems to require a stronger catalyst.

With the Brexit front muted so far this week, the Sterling should look to the BoE meeting and upcoming data for direction.

Market consensus expects the central bank to stay on the sidelines tomorrow, seconded by Industrial/Manufacturing Production and the NIESR GDP Estimate.

GBP/USD levels to consider

As of writing the pair is up 0.15% at 1.2955 facing the next resistance at 1.2992 (2017 high May 8) followed by 1.3000 (psychological handle) and finally 1.3125 (high Sep.22 2016). On the other hand, a breach of 1.2900 (low May 9) would aim for 1.2830 (20-day sma) and finally 1.2829 (low May 4).