GBP/USD consolidates near mid-1.30, Brexit bill debate eyed

GBP/USD’s attempt to test 1.31 handle failed near 1.3085 region in the US last session, and from there the prices reversed sharply to now trade modestly flat near the mid-point of 1.30 handle, as we progress towards the European opening bells.

GBP/USD hovers near daily pivot of 1.3049

The spot extends its overnight side-trend into early Europe, consolidating the latest down move from five-week highs of 1.3083 to NY lows of 1.3035. The lack-luster trading seen in Cable so far this Thursday is also on the back of increased nervousness ahead of the first debate on the Brexit bill in the UK’s parliament today.

Moreover, the GBP traders expect the ECB monetary policy decision to stir huge volatility across the FX space and hence, refrain from placing any directional bets on the pound, as it may be significantly affected by the “rub-off” effect.

Calendar-wise, the UK docket remains light, with the only Halifax HPI due on the cards, while the American session offers the weekly jobless claims and IBD/TIPP Economic Optimism, which could provide fresh impetus to the USD bulls, especially after yesterday’s solid rebound.

GBP/USD levels to consider             

Haresh Menghani, Analyst at FXStreet, writes: “Technically, the pair seems poised to extend its near-term upward trajectory towards reclaiming the 1.3100 handle, en-route 1.3130 resistance area. A follow through buying interest has the potential to continue lifting the pair even beyond the 1.3200 handle towards early August daily closing highs resistance near the 1.3220-25 region.”

“On the flip side, any pull-back below 1.3030-25 area might now find some fresh buying interest near the key 1.30 psychological mark and hence, is more likely to limit any further downside near 50-day SMA support near the 1.2980-75 region,” Haresh adds.