GBP/USD regains poise, eyes 1.3200 ahead of UK industrial data

The GBP/USD pair found fresh bids once again near 1.3230 region in the Asian trades, as the bulls fight back control, following the release of upbeat UK BRC retail sales data.

GBP/USD: Will it regain 1.3200?

The spot maintains the recent bullish bias and remains on track to test previous highs at 1.3184 en route 1.3200 levels, as worries over the Westminster chaos fades offering the much-needed impetus to the GBP bulls.

Moreover, the reversal seen in Cable from near 1.30 handle can be also attributed to upward revision to the labour cost index data by the ONS, while optimistic comments on the EU post-Brexit partnership from the UK PM May, during her speech before the Parliament, also helped the pound to stage a solid rebound yesterday.

More so, the renewed upside in the major is also due to markets belief that the GBP sell-off has been overdone and much of the bad news has already been factored into the GBP at current levels.

Focus now shifts towards the UK and US fundamentals for fresh momentum, with the UK manufacturing and industrial production data to keep the EUR, GBP traders busy today. Meanwhile, the US housing data and FOMC member Kashkari’s speech will be also closely eyed, as full markets return after yesterday’s Columbus Day holiday.

GBP/USD Preferred Strategy

Valeria Bednarik, Chief Analyst at FXStreet noted: “In the 4 hours chart, indicators aim higher, entering positive territory, whilst the price settled above an anyway bearish 20 SMA. The same chart shows also that the price was unable to rally beyond the 38.2% retracement of last week's decline, at 1.3170, now the immediate resistance.  Support levels: 1.3110 1.3065 1.3025 Resistance levels: 1.3170 1.3210 1.3250.”