GBP/USD runs into 1.3340 barrier, drops sharply to 1.3270

The bid tone behind the GBP is seen weakening post-China open, sending GBP/USD back to retest 1.33 handle amid mixed sentiment prevalent in Asia so far.

GBP/USD rejected near key resistance at 1.3340

Currently, GBP/USD now rises 0.28% to 1.3278, retreating sharply from fresh weekly highs previously posted at 1.3337. The cable came under renewed selling pressure and eased nearly 40-pips over the last hour, after the bulls ran into a static resistance placed at 1.3340 region. While mixed sentiment seen in Asia amid higher equities and negative commodities, also   capped further upside.

The recent upmove in the GBP/USD pair is largely on the back of unwinding of the short positions on Brexit, as we head towards the much-awaited BOE interest rate decision due tomorrow.

Next in focus for the major remains the Chinese trade numbers, which is expected to have a significant impact on the risk sentiment, while BOE Credit conditions survey will fill in an other-wise light trading calendar today.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3340 (psychological levels/ previous tops), above which 1.3400 (round figure) would be tested. On the flip side, support is seen at 1.3214 (1h 20-SMA) below that at 1.3181 (daily pivot).