GBP/USD gearing up for a test of 1.3000

The Sterling is trading on a firm footing in the second half of the week, taking GBP/USD to the boundaries of the psychological 1.3000 handle.

GBP/USD attention to UK data

Cable is advancing for the second consecutive session so far today, reverting yesterday’s drop to the vicinity of 1.2920 and approaching the key 1.3000 limestone, always amidst the resurgence of the selling bias around the buck.

In fact, the FOMC minutes published on Wednesday failed to sustain the Dollar’s recovery, prompting sellers to step in and force the US Dollar Index to give away its daily gains.

Looking ahead, UK’s advanced GDP figures for the first quarter are due ahead of Business Investment and the Index of Services. Across the pond, the usual report on the labour market is due followed by Wholesale Inventories and the speech by FOMC’s L.Brainard (permanent voter, centrist).

GBP/USD levels to consider

As of writing the pair is gaining 0.12% at 1.2986 and a breakout of 1.3036 (high May 23) would aim for 1.3051 (2017 high May 18) and finally 1.3125 (high Sep.22 2016). On the other hand, the next support lines up at 1.2924 (low May 24) followed by 1.2889 (low May 18) and then 1.2842 (low May 12).