GBP/USD eyes a break above 1.3050 ahead of US data, BOE’s Haldane

The steady Asian recovery in GBP/USD lost steam just shy of 1.3050 levels in early Europe, knocking-off the rate sharply lower to test the key support of 1.3015. The bulls continued to guard the last, sending the spot back towards the mid-point of 1.30 handle.

GBP/USD regains 10-DMA of 1.3034  

The spot is seen attempting bids again, having fluctuated between gains and losses so far this session, as the pound finds fresh lift from the risk-on rally seen in the European equities, in the wake of higher oil prices.

Moreover, subdued trading activity seen around the US dollar across the board also keeps the sentiment around Cable somewhat buoyed. The USD index continues trade below 94 handle, almost unchanged on the day.

Also, the upcoming US CB consumer confidence is expected to deteriorate, which could re-ignite fresh selling in the US dollar, lifting the major back above 1.3050 levels. However, the upside looks limited ahead of BOE Chief Economist Haldane’s speech due later today and UK Q2 prelim GDP release scheduled tomorrow.

The preliminary figures for the second quarter UK GDP are expected to have accelerated to 0.3% q/q versus 0.2% seen last, while on annualized basis, the pace of expansion seems to have eased to 1.7% versus 2.0%.

GBP/USD levels to consider             

To the upside, resistances are aligned at 1.3053/57 (Jul 19 & 24 high), 1.3100 (round figure) and 1.3150 (psychological levels). On the flipside, 1.2972 (20-DMA) guards the next support of 1.2881 (50-DMA), below which 100-DMA support at 1.2830 lie.