GBP/USD struggles to take-out stiff resistance near 20-DMA

The offered tone behind the GBP remains intact as we head towards early Europe, with the GBP/USD recovery on 1.31 handle losing steam just near 20-DMA placed at 1.3125.

GBP/USD eyes 5-DMA/ daily tops at 1.3145

Currently, GBP/USD now drops -0.20% to trade at 1.3113, trying hard to take out strong offers lined up near 1.3120 region. The cable extends its choppiness in early Europe, and now fights hard to take on the recovery from below 1.31 handle back towards 1.3145 levels, where 5-DMA and daily top intersect.

The pound continues to run through fresh offers on every attempt to the upside as markets give up higher-yielding currencies in favour of safe-haven amid persistent risk-off market profile. While, a latest FT report cited that BOE’s MPC member Weale now favours immediate stimulus for the economy in wake of the Brexit fallout.

Further, a sharp sell-off witnessed in Asia can be also attributed to the news that a couple of high street UK banks are considering to impose negative interest rates to their customers.

The immediate focus now shifts towards the BBA mortgage approvals data from the UK docket ahead of the US economic releases due later in the NA session.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3125 (20-DMA), above which 1.3145 (daily high/ 20-DMA) would be tested. On the flip side, support is seen at 1.3076 (Jul 22 low) below that at 1.3050 (psychological levels).