GBP/USD rejected near 20-DMA, revisits daily lows

Broad based US dollar recovery gains momentum during mid-Asia, sending GBP/USD sharply lower from just below 1.31 handle.

GBP/USD fails near 20-DMA at 1.3090

Currently, GBP/USD trades modestly flat at 1.3045, reversing a rally to 1.3088 levels. daily tops. The cable failed to cling onto uncertain FOMC minutes-backed gains and met fresh supply just shy of 20-DMA barrier, as the US dollar trims losses against its major peers after a sharp sell-off witnessed on the FOMC minutes release.

The Fed meeting minutes unveiled that some voters had called for an early interest rate hike. However, Fed officials generally expressed a desire to gather more data before any additional monetary tightening.

Meanwhile, the bulls defend gains against the back drop of recent upbeat economic release from the UK, with the jobs and inflation data bettering expectations. Focus now shifts towards the UK retail sales data, which will be released ahead of the US jobless claims and Philly Fed manufacturing index later today.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3090 (20-DMA), above which 1.3149 (daily R2) would be tested. On the flip side, support is seen at 1.3000 (round figure) below that at 1.2985 (10 & 5-DMA).