GBP/USD: Will it regain 1.3060 amid risk-off and light calendar ahead?

GBP/USD caught a fresh bid-wave in Asia this Tuesday, taking the rate back towards the key upside barrier located near 1.3060 region amid notable USD supply.

GBP/USD holds above daily pivot at 1.3036

Despite renewed uptick seen in the spot on last hours, the bears continue to guard at higher levels, as persisting oil-driven risk-off sentiment continues to weigh on the higher-yielding GBP.

Moreover, fresh Brexit jitters continue to haunt the GBP markets, with markets doubting Theresa May’s future as the UK’s PM amid a drop in markets’ confidence on May’s ability to handle the Brexit talks, especially after the election debacle.

The downside, however, may remain cushioned amid broad US weakness, as Treasury yields trade on the back of dovish comments from the FOMC members Bullard and Kashkari delivered in the US last session. The US dollar index drops -0.12% to 93.18, wavering near daily lows of 93.12.

Data-wise, the session remains light amid no economic news from the UK docket, while from the US calendar, the JOLTS job openings and IBD/TIPP Economic Optimism will be reported, which is expected to have negligible impact on the prices.

GBP/USD levels to consider             

Valeria Bednarik, Chief Analyst at FXStreet noted: The pair remains biased lower, as in the 4 hours chart, the price is pressuring its 200 EMA, around 1.3005 while the 20 SMA extended further lower above the current level. The Momentum indicator aims modestly higher in the mentioned time frame, but the RSI indicator remains flat around 30, this last reflecting limited buying interest around the pair. Support levels: 1.3000 1.2965 1.2920 Resistance levels: 1.3070 1.3110 1.3150.”