GBP/USD: Supply caps minor-recovery near 1.3085

The bid tone around the US dollar somewhat weakness over the last hour, allowing a minor-pullback in GBP/USD. However, sellers continue to lurk near 1.3070 region.

GBP/USD: 1.3100 back on sight?

The spot also derived support from higher London stock, while renewed strength seen in oil prices amid better Chinese macro news, also provide fresh impetus to the risk-currency GBP.

Despite, minor-recovery attempts staged by GBP/USD, the bears continue to retain control on the back of fresh selling seen in the GBP/JPY cross, which weighs down on the core pair.

Meanwhile, the USD dynamics remain the main driver for Cable today amid a lack of fresh fundamentals and increased nervousness ahead of the UK inflation report. 

In the meantime developments surrounding the resumption of Brexit talks today in Brussels combined with the sentiment on the global equities will provide some near-term trading opportunities. 

GBP/USD levels to consider             

Karen Jones, Analyst at Commerzbank noted, “GBP/USD is bid near term. It has eroded the 1.3000/60 recent high and in doing so introduced scope to the 1.3446/60 September 2016 high. Intraday Elliott wave counts are implying that the market will fall short of this target. We also note the 13 count on the 60 minute chart and will wait to buy the dips - initial support lies 1.3000/60 and key support remains 1.2775/50.”