GBP/USD: Buyers in control, takes-out 1.3050

The GBP/USD pair found fresh bids near 1.3030 region and regained poise, taking the recovery further above the mid-point of 1.30 handle.

GBP/USD supported amid broad USD weakness

Currently, GBP/USD trades 0.42% higher near fresh session highs of 1.3060, now aiming for a test of 1.31 handle. The recovery in the cable picked-up pace from around 1.3030 region and now extends further into the positive territory amid increased demand for higher-yielding assets as risk sentiment improves in wake of the oil-price rally.

Moreover, the major also finds impetus from ongoing weakness surrounding the greenback against its major peers, as the dollar corrects lower after Friday’s auspicious US CPI-led rally.

Looking ahead, we have a fairly-light economic calendar for today, as all eyes now remain focused on the Fed’s interest rate decision, after the BOE stood pat on its monetary policy program last week.

GBP/USD Levels to consider            

The pair has an immediate resistance at 1.3089 (Aug 17 high), above which 1.3104 (5-DMA) would be tested. On the flip side, support is seen at 1.2992 (multi-week lows) below that at 1.2950 (psychological levels).