GBP/USD struggles to extend the bounce above 1.2930

The GBP/USD pair staged a solid rebound from the 20-DMA support of 1.2906, although the renewed uptick lost steam once again near 1.2930 region, sending the rate back below 100-DMA located at 1.2923.

GBP/USD supported above 1.29 handle, but for how long?

The rebound in the spot lacks momentum, as persistent broad based US dollar continues to weigh. The greenback witnessed notable demand in Asia, as the traders cheered upbeat US GDP and ADP jobs reports, pushing a Dec Fed rate hike back on the table.

However, the downside remains cushioned, in the wake of better sentiment towards risk assets, as market move past the North Korean geopolitical tensions and look forward to the economic fundamentals for fresh signals.

Hence, the pair eagerly awaits a fresh batch of US macro news due on the cards later in the NA session, as the UK docket remains absolutely data empty today. Meanwhile, the speech by the BOE MPC member Saunders will be also eyed for fresh impetus on the pound.

GBP/USD levels to consider             

Haresh Menghani, Analyst at FXStreet explains, “immediate resistance remains near 1.2940 level, which is closely followed by 50-day SMA hurdle near the 1.2960-65 region. A bullish break through the mentioned hurdles should lift the pair beyond the key 1.30 psychological mark towards its next horizontal resistance near 1.3030-35 zone.”

“On the flip side, any weakness below the 1.2900 handle might continue to find some support near the 1.2980-70 region, which if broken convincingly would indicate additional downside in the near-term. Below the mentioned support, the pair is likely to accelerate the slide towards testing a short-term ascending trend-line support, currently near the 1.2800 handle,” Haresh adds.