GBP/USD steady above 1.3250 with upside bias

• GBP/USD holds steady posting minor gains versus US dollar.
• Pound recovers after yesterday’s slide despite UK political concerns and weak data.

The GBP/USD pair has been moving in a small range during the last hours between 1.3285 and 1.3250, slightly above the level it closed yesterday.

The pound ended lower yesterday following resignations at PM May’s cabinet. Today is recovering ground, holding firm above 1.3250, unaffected by weaker-than-expected UK industrial production data and despite a stronger US dollar. US Dollar Index futures climbed to 94.18 earlier today, to test Friday’s top. During the US session trimmed losses and pulled back below 94.00.

The daily chart of GBP/USD shows the pair holding a positive tone, despite being unable to hold on top of 1.3300. Despite the bearish correction it held above 1.3200 and also avoided a daily close below the 20-day moving average. A consolidation under 1.3190 would remove the short-term upside bias.

GBP/USD Short-term levels to watch

To the upside, the 1.3300 area is the immediate resistance followed by 1.3325 and 1.3350. On the flip side, support levels might be located at 1.3245/50 (American session low), 1.3220 (Jul 10 low) and 1.3185/90.