GBP/USD flirting with highs just below 1.3000

After bottoming out in the 1.2940 area in early trade, GBP/USD has now regained attention and is approaching daily highs near the psychological handle at 1.3000.

GBP/USD bounces on weaker USD

The now softer tone around the buck is allowing the risk-associated assets to wake up from daily lows and recover most of the ground lost earlier in the session.

Previously in the UK, mixed GDP figures during the second quarter failed to give sustainable support to GBP. However, market participants have perceived as disappointing today’s results from the US docket, removing tailwinds from the greenback.

Alternating risk trends, an erratic performance of the greenback and absence of relevant catalysts have been behind the pair’s prices action throughout this week, while dovish comments by M.Shafik has reminded markets that the BoE keeps the pump ready for additional easing in case of need.

In addition, Cable is closing the first week with gains after three consecutive pullbacks, rebounding from recent lows in the boundaries of the critical support at the 1.2900 handle.

GBP/USD levels to consider

As of writing the pair is up 0.19% at 1.2992 and a breakout of 1.3125 (high Sep.22) would open the door to 1.3135 (20-day sma) and finally 1.3447 (high Sep.6). On the flip side, the next support lines up at 1.2912 (low Sep.23) ahead of 1.2863 (low Aug.15) and then 1.2796 (2016 low Jul.6).