GBP/USD: Bulls back in control, looks to regain 1.2950

Having faced rejection once again near 1.2950 in early Europe, the GBP/USD pair eroded almost 25 pips rapidly, before finds fresh bids at the daily pivot to now re-test the mid-point of 1.29 handle.

GBP/USD bounces-off daily pivot

The major caught a fresh bid-wave, after the US dollar came under renewed selling pressure versus its major rivals, following a warning issued by the US President Trump in response to the North Korean missile threat.

US President Trump: US considering ‘pretty severe things’ on North Korea

Moreover, a renewed risk-on wave gripped Europe amid strengthening Treasury yields and rallying oil prices, which lifted the sentiment around the risk currency GBP.  Both crude benchmarks jump +1.30%, while the US yields rally +0.75% to +1.20%.

Attention turns towards the US dataflow due later today for fresh impetus on the prices, as markets look past the recent downbeat UK PMI surveys.

UK services PMI: ‘A slowing in services sector growth completes a triple-whammy of disappointing PMIs’

Calendar-wise, the US docket offers the ADP jobs data, followed by jobless claims, trade balance and ISM non-manufacturing PMI report.

GBP/USD levels to consider             

To the upside, the immediate resistance is the 1.2950 (5-DMA/ previous top) followed 1.2978 (classic R2/ Fib R3) and then 1.3030 (5-week tops). On the downside, support could be located at 1.2924 (50-DMA/ daily pivot), 1.2864 (50-DMA) and 1.2824 (20-DMA).