GBP/USD swings back towards 1.3400 as FTSE leaps at open

The GBP/USD pair wiped out losses and now turns back into the positive territory beyond the mid-point of 1.33 handle as the bulls appear to be rescued by a flying start on the European markets.

GBP/USD eyes 1.3400

Currently, GBP/USD trades 0.22% higher at fresh session tops of 1.3384, on its way to retest 1.34 handle. The cable ran through fresh bids after the European markets opened on a stronger footing and triggered another wave of risk-appetite across the markets, boosting the demand for the higher-yielding currency GBP. The German DAX jumps +1%, while the UK’s FTSE rockets +1.51% in early deals.

Additionally, the pound also gains in wake of the upcoming EU Summit, with markets expecting some commitment to calm the Brexit vote-led panic and uncertainty experienced globally. Data-wise, apart from the second-tier UK data, the core PCE price index, personal spending and pending home sales data from the US docket will remain in focus for further momentum on the major.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3418 (June 28 High), above which 1.3450 (psychological levels) would be tested. On the flip side, support is seen at 1.3331 (daily pivot) below that at 1.3244 (daily S2).