GBP/USD recovery stalls near 1.2840

After testing lows near 1.2770 earlier in the session, GBP/USD has regained buying interest and is now flirting with daily highs in the 1.2830/40 band.

GBP/USD turns positive beyond 1.2800

Cable is reverting a 2-day negative streak so far today, leaving behind the initial bearish mood and retaking the key 1.2800 handle and above.

The now renewed offered bias around the greenback has forced the US Dollar Index (DXY) to surrender most of its earlier gains and retreat to the 93.20/15 band, encouraging the pair to rebound from daily lows.

In addition, Cable derived some extra strength from the knee-jerk in EUR/GBP, which has slipped back from YTD tops in the vicinity of 0.9240 to test once again the 0.9200 neighbourhood.

In the UK data space, preliminary Q2 GDP figures came in in line with market consensus. In the US docket, initial claims rose to 234K WoW, taking the 4-week average to 237.75K from 240.50K. Ahead in the session, July’s existing home sales are due, while expectations around the speech by Chief J.Yellen at the Jackson Hole Symposium on Friday remain on the rise.

GBP/USD levels to consider

As of writing the pair is gaining 0.23% at 1.2828 facing the next up barrier at 1.2879 (10-day sma) followed by 1.2920 (high Aug.18) and then 1.2923 (55-day sma). On the flip side, a break below 1.2774 (low Aug.24) would target 1.2747 (76.4% Fibo of 1.2587-1.3266) en route to 1.2652 (200-day sma).