GBP/USD off highs, testing 1.2800

The Sterling has faded the earlier spike to daily highs near 1.2820 vs. the greenback, and has now prompted GBP/USD to recede to the 1.2800 neighbourhood.

GBP/USD within range, supported around 1.2750

The pair is extending its consolidative theme around 1.2800 the figure during the first half of the week, with some decent support in the mid-1.2700s and gains so far capped at 2017 tops just above the 1.2900 handle (April 18).

GBP is trading in tandem with the prevailing risk-on sentiment, particularly after candidate Emmanuel Macron won the presidential elections in France last Sunday.

The bias towards the riskier assets should stay unchanged for the time being, as latest polls are seeing Macron defeating far-right candidate Marine Le Pen by around 60%-40% at the second round on May 7.

Nothing expected data wise in the UK today, while the S&P/Case-Shiller index, New Home Sales and the key Consumer Confidence gauged by the Conference Board are all due later in the NA session.

GBP/USD levels to consider

As of writing the pair is gaining 0.11% at 1.2809 and a breakout of 1.2871 (high Apr.24) would open the door to 1.2909 (high Apr.18) and then 1.3000 (psychological handle). On the other hand, the immediate support aligns at 1.2758 (low Apr.21) followed by 1.2615 (200-day sma) and finally 1.2580 (20-day sma).