GBP/USD around 1.2960 ahead of data

The continuation of the sell off around he greenback is propping up the upside momentum around GBP/USD, now navigating the mid-1.2900s and with the door further open for a new visit of the psychological 1.3000 handle.

GBP/USD looks to data

Apart from the selling bias punishing the buck, the BoE has clearly collaborated with the rally in GBP after Governor M.Carney surprised markets on Wednesday at the ECB Forum, arguing that some stimulus may be removed from the current programme.

Carney also added that a move up in rates is likely if wages and growth gather further traction. Recent comments by Carney thus fell in line with last week’s hawkish appreciations by BoE’s A.Haldane, who hinted at the possibility that the ‘Old Lady’ could hike rates as soon as this year.

Spot is, in the meantime, advancing for the seventh consecutive session, while the upbeat momentum appears reinforced by the bullish crossover in the daily MACD and the RSI (14) around 61, still leaving room for another push higher before entering the overbought territory.

On the UK data front, BoE’s consumer credit figures are due seconded by mortgage approvals and M4 money supply. In the US, the final print for Q1 GDP is due along with the usual weekly report on the labour market and the speech by St. Louis Fed J.Bullard (2019 voter, centrist).

GBP/USD levels to consider

As of writing the pair is up 0.26% at 1.2961 and a breakout of 1.3000 (psychological level) would open the door to 1.3051 (2017 high May 18) and then 1.3125 (high Sep.22 2016). On the other hand, the next support aligns at 1.2849 (55-day sma) followed by 1.2800 (21-day sma) and finally 1.2765 (10-day sma).