GBP/USD bounces-off 20-DMA, re-takes 1.3160

Fresh bids emerged for the GBP/USD pair around 20-DMA at 1.3134, sending the rate back towards 1.3200 amid risk-on rally in the European equities.

GBP/USD eyes 1.3200

Currently, GBP/USD now gains +0.38% to trade at fresh session highs of 1.3163, reversing a dip to 1.3135 region. The cable is building on morning gains as the demand for GBP/JPY cross appears to have picked-up pace yet again and hence, boosts the upside in the core pair – GBP/USD.

The pound also finds support from a subdued trading activity seen around the greenback across the board, while positive European stocks also keep the upside intact in the major. The German DAX is up +1% and the UK’s FTSE climbs +0.35%.

The immediate focus now shifts towards the CBI industrial orders expectations data from the UK data amid a data-quiet trading calendar today. While for the week ahead, the FOMC and UK GDP data are expected to emerge the main risk events.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3170 (1h 50-SMA), above which 1.3200 (round number) would be tested. On the flip side, support is seen at 1.3076 (Jul 22 low) below that at 1.3050 (psychological levels).