GBP/USD eases from tops, back near 1.2950

The Sterling is now giving up some of its initial gains vs. the greenback, forcing GBP/USD to recede towards the mid-1.2900s.

GBP/USD gains capped near 1.2980

After climbing as high as the 1.2980 area during early trade, sellers have stepped in and prompted the current knee-jerk in Cable, although the underlying tone remains constructive amidst a generalized USD-selling.

In fact, the greenback has accentuated its decline in the second half of the week as traders continue to unwind long positions in the buck, while the recent steady stance from Chair J.Yellen is also collaborating with the deteriorated picture around USD.

In the data space today, UK’s home prices tracked by Nationwide contracted 0.1% in August and expanded 2.1% over the last twelve months, both prints missing consensus

Across the pond, the S&P/Case-Shiller index is due along with the speech by Chicago Fed C.Evans (voter, centrist).

GBP/USD levels to consider

As of writing the pair is up 0.11% at 1.2947 and a break above 1.2978 (high Aug.29) would expose 1.3031 (high Aug.11) and then 1.3127 (high Jul.18). On the other hand, the immediate support lines up at 1.2900 (100-day sma) seconded by 1.2873 (10-day sma) and finally 1.2771 (low Aug.24).