GBP/USD upside faltered below 1.3000

The better tone in the greenback has forced GBP/USD to retreat from earlier tops in levels just below the critical 1.3000 barrier.

GBP/USD off multi-month tops

Cable could not sustain the upside bias further north of 1.2990 during the Asian session, levels last seen in late September 2016, as sellers seem to be clustered near 1.3000 the figure in light of the recent and strong rally.

After advancing for the last four weeks, the pair seems to have found some strong resistance in the vicinity of 1.3000 the figure for the time being, always against the backdrop of positive risk appetite trends and ahead of the BoE’s Super-Thursday.

Market consensus expects the ‘Old Lady’ to stay put at its meeting later in the week, with MPCs revising lower its GDP figures for the current year while inflation forecasts might be revised higher.

From the speculative community, GBP net shorts have been trimmed to the lowest level since February 28 in the week to May 2, as per the latest CFTC report.

Data wise in the US docket, the Fed’s Labor Market Conditions Index is expected while St Louis Fed J.Bullard (2019 voter, centrist) and Cleveland Fed L.Mester (2018 voter, hawkish) are due to speak.

GBP/USD levels to consider

As of writing the pair is down 0.01% at 1.2979 with the next support at 1.2898 (low May 5) followed by 1.2829 (low May 4) and finally 1.2789 (20-day sma). On the upside, a surpass of 1.2990 (2017 high May 8) would open the door to 1.3000 (psychological handle) and finally 1.3125 (high Sep.22 2016).