GBP/USD bounces off lows, steady below 1.30

After a brief dip to the 1.2980 area following the Manchester blast, GBP/USD has managed to get some traction and is now flirting with the 1.3000 handle.

GBP/USD gains capped near 1.3050

Cable deflated from its recent 2017 tops in the mid-1.3000s although it remains in the upper end of the range, always amidst the continuation of the offered bias around the greenback.

In fact, heightened uncertainty on the US political scenario continues to weigh on the buck and lends extra support to the risk-associated space. On that matter, all eyes today should be on President Trump, as he is expected to unveil his budget proposal for the next year.

In the UK, Public Sector finance figures are due seconded by Inflation Report Hearings and CBI’s Distributive Trade Survey.

From the positioning side, GBP remains somewhat supported, as speculative net shorts have retreated to the lowest since late May 2016 during the week ended on May 16, as per the latest CFTC report.

GBP/USD levels to consider

As of writing the pair is losing 0.12% at 1.2984 facing the next support at 1.2975 (low May 22) followed by 1.2931 (20-day sma ) and finally 1.2889 (low May 18). On the flip side, a breakout of 1.3051 (2017 high May 18) would expose 1.3125 (high Sep.22 2016) and then 1.3351 (high Sep.12 2016).