GBP/USD sidelined around 1.2900, looks to extend the rebound

The Sterling is posting marginal gains in a context of generalized weakness around the greenback, with GBP/USD hovering over the key 1.2900 handle for the time being.

GBP/USD coming up from 1.2810

After sinking to the vicinity of the 1.2800 handle on Wednesday, Cable managed to regain some attention and retake the 1.2900 neighbourhood, where it is now trying to stabilize.

While concerns about the ongoings of the Brexit negotiations and UK politics still linger over investors’ sentiment, positive results from the UK’s labour market yesterday plus an increasing selling pressure around the buck have been behind the pair’s up move as of late.

In fact, Yellen’s testimony was perceived as somewhat dovish by market participants on Wednesday, adding to earlier comments by FOMC’s L.Brainard and all collaborating with the renewed offered bias surrounding the greenback.

In the data space, nothing noteworthy from the UK, whereas another testimony by Chief Yellen is expected later today followed by US June’s producer prices, initial claims and speeches by Chicago Fed C.Evans (voter, centrist) and L.Brainard (permanent voter, dovish).

GBP/USD levels to consider

As of writing the pair is up 0.15% at 1.2902 and a breakout of 1.2920 (10-day sma) would open the door to 1.2927 (23.6% Fibo of 1.2587-1.3032) and then 1.2984 (high Jul.6). On the flip side, the next down barrier aligns at 1.2876 (55-day sma) followed by 1.2840 (21-day sma) and finally 1.2809 (50% Fibo of 1.2587-1.3032).