GBP/USD probing session highs near 1.3050

The Sterling is recovering the smile at the beginning of the week, now lifting GBP/USD to the mid-1.3000s ahead of the opening bell in Euroland.

GBP/USD supported around 1.3020

After two consecutive daily losses, Cable is now recovering some ground lost during last week following the dovish message from the Bank of England (Thursday) and the solid report from the US labour market (Friday).

In fact, spot lost over 2 cents since Thursday’s fresh cycle high near 1.3270 to Friday’s lows in the vicinity of 1.3020 in the back of the release of US non-farm payrolls for the month of July (222K).

The sharp pullback seems to have found dip buyers in the 1.3020 region, reinforced at the same time by the proximity of the Fibo retracement of the June-August rally just above 1.3000 the figure.

Brexit headlines and USD-dynamics should stays as drivers for the pair’s price action ahead in the week, while industrial/manufacturing production and the NIESR GDP Estimate will be the main releases in the UK docket.

On the positioning front, GBP speculative net shorts climbed to 5-week tops during the week ended on August 1, as per the latest CFTC report.

GBP/USD levels to consider

As of writing the pair is up 0.08% at 1.3053 facing the immediate up barrier at 1.3122 (10-day sma) followed by 1.3166 (high Aug.4) and finally 1.3266 (2017 high Aug.3). On the downside, a breach of 1.3021 (low Aug.4) would open the door to 1.3007 (38.2% Fibo of 1.2587-1.3266) and finally 1.2930 (low Jul.20).