GBP/USD unable to gather traction, stays near 1.2930

The Sterling is trading almost unchanged vs. the buck in the second half of the week, with GBP/USD currently navigating the 1.2930 region.

GBP/USD upside capped near 1.3030

Cable is attempting to stabilize in the low-1.2900s following Friday’s tops beyond the psychological 1.3000 handle, all against the backdrop of a firmer greenback while poor releases from UK’s PMI gauges earlier in the week also dented investor sentiment.

After eight consecutive sessions with gains in late June, the pair found some tough resistance in the 1.3030/35 band, sparking the current leg lower which seems to have found some initial support around the 23.6% Fibo retracement of the 1.2587-1.3032 bull run.

In the meantime, Brexit jitters and the uncertainty in the UK political scenario seem to have been relegated to the passenger’s seat for the time being, although they’re expected to come to the fore as key drivers for the British Pound in the near/medium term.

Nothing scheduled today in the UK docket, whereas the ADP reposrt, Initial Claims, the ISM non-manufacturing and the speech by FOMC’s J.Powell (permanent voter, centrist) are all due later across the pond.

GBP/USD levels to consider

As of writing the pair is retreating 0.01% at 1.2933 facing the next support at 1.2894 (10-day sma) followed by 1.2872 (55-day sma) and finally 1.2862 (38.2% Fibo of 1.2587-1.3032). On the upside, a breakout of 1.3032 (high Jun.30) would open the door to 1.3051 (2017 high May 18) and then 1.3125 (high Sep.22 2016).