GBP/USD re-takes 1.3350 amid risk-on rally in equities

The GBP/USD pair is seen gradually reversing a dip below 1.33 handle, now moving back towards 1.3350 region, as the greenback turns negative amid risk-on rally in the Asian equities.

GBP/USD resumes relief rally?

Currently, GBP/USD trades -0.13% to 1.3328, recovering further from a dip to session lows struck at 1.3289. The cable catches fresh bid over the last and attempts a tepid- bounce on the 1.33 handle, as markets resort to take the yield advantage amid persistent risk-on market profile and hence, underpin the higher-yielding currency GBP.

However, any recovery in the GBP/USD pair may be considered corrective in wake of the massive sell-off, following Britain’s decision to leave the European Union (EU). The major came under renewed selling pressure in the last NA session after the greenback recovered ground on the release of upbeat US GDP and consumer confidence data.

In the day ahead, all eyes will continue to remain on the EU Summit for fresh Brexit-related developments, while the US core PCE price index, personal spending and pending home sales data will be closely watches for fresh direction on the buck.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3350 (psychological levels), above which 1.3371 (daily high) would be tested. On the flip side, support is seen at 1.3244 (daily S2) below that at 1.3126 (31-year lows).