GBP/USD extends recovery from multi-decade lows, re-takes 1.2950

The pound caught a fresh bid tone in recent dealings, lending support to the ongoing recovery in GBP/USD from fresh thirty-one year lows.

GBP/USD regains 1.29 and beyond

Currently, GBP/USD now drops -0.65% to 1.2940, having found strong bids near 1.2880 region. The cable’s minor-bounce appears to be supported by stalled USD buying across the board, whilst some buoyancy seen around the London benchmark, FTSE 100 index, also offers some respite to the bulls.

Despite the tepid-recovery, the GBP/USD pair remains vulnerable as looming concerns over Brexit impact on the British economy and the resultant talks about a rate cut by the BOE are likely to keep the pound under pressure.

Focus remains on the US economic data as well as FOMC minutes amid a data-quiet UK docket. In the meantime, the major will continue to track the broader market sentiment for fresh momentum.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3000 (psychological levels), above which 1.3066 (Daily pivot) would be tested. On the flip side, support is seen at 1.2797 (multi-year low) below that at 1.2750 (1985 lows).