GBP/USD eases-off 5-week tops, but keeps 1.3000 ahead of UK GDP

The GBP/USD pair extends its upside consolidative mode near multi-week tops into early Europe, as investors gear up for the UK current account and final GDP data for fresh trading impetus.

GBP/USD supported at 1.3000

The spot pauses a 3-day rally backed by BOE Governor Carney’s hawkish twist, as the bulls take a breather amid minor-profit-taking heading into the UK GDP report release. Moreover, stalled selling in the USD across the board also prompts the retreat in the GBP/USD pair.

Further upside in cable also remains capped amid equities sell-off induced risk-aversion, which weighs down on the risk currency GBP. The Asian equities dropped -1% to -1.50% , while the London stocks futures also trade lower, pointing to a negative start for the FTSE 100 index.

Focus now remains on the UK datasets, with the final GDP figures to remain unchanged at 0.2% q/q, while all eyes will on the consumer spending component of the GDP, especially ahead of the US personal spending and core PCE price index due later in the NA session.

GBP/USD levels to consider             

To the upside, the immediate resistance is the 1.3050 (psychological mark/ May tops) followed 1.3065 (daily classic R2/ Fib R3) and then 1.3100 (round figure). On the downside, support could be located at 1.2987 (daily pivot), 1.2938 (Jun 29 low) and 1.2899 (5-DMA).