GBP/USD looks to regain 1.2950, despite risk-off on NK missile fire

The GBP/USD pair managed to remain better bid in the Asian session this Tuesday, although the bears continued to guard the 1.2950 barrier on the back of North Korea’s missile test news fuelled widespread risk-aversion.

The higher-yielding currency, GBP, tends to suffer amid market unrest and panic, as the Asian equities and oil prices tumbled, after the reports of several missiles launched by North Korea headed into the Japanese airspace.

Meanwhile, Cable continues to derive some support from the sell-off seen in the US rates across the curve, which underpins the demand for the pound as an alternative higher-yielding asset.  

The spot now looks forward to the sentiment on the European open, with full markets returning after an extended holiday-break, while the UK docket offers the second-tier nationwide HPI data, which will have virtually no impact on the GBP markets. Focus also remains on the developments surrounding the Brexit negotiations.

However, the US consumer confidence data could have a significant impact on the US dollar, eventually influencing the GBP/USD pair.

 GBP/USD levels to consider            

Valeria Bednarik, Chief Analyst at FXStreet noted: “The pair maintains the positive tone, with the 4 hours chart showing that technical indicators keep heading higher, despite being in overbought territory, the price holding well above a bullish 20 SMA, and the price now challenging its 200 EMA, around the mentioned daily high. Anyway, a stronger resistance comes at 1.2965, with a break above it required to confirm additional gains ahead.Support levels: 1.2910 1.2875 1.2830 Resistance levels: 1.2965 1.3000 1.3045.”