GBP/USD fades a spike above 1.30, back to square one

A renewed buying interest seen behind the GBP/USD pair remained short-lived, now sending the rate back below 5-DMA located at 1.2995.

GBP/USD tracks Oil lower

Currently, GBP/USD trades modestly flat at 1.2970, retreating sharply from fresh session highs reached at 1.3009 in the last hour. The cable pares back a 40-pips rally triggered by a stronger opening on the European indices, which suggested the risk-on was back into the markets as dust settled over the Deutsche Bank aftermath.

The GBP/USD pair fell back into negative territory on the back of fresh selling in oil prices, as markets digest latest headlines crossing the wires from the oil ministers from OPEC and non-OPEC nations. Iranian oil minister squashed hopes of an oil output agreement to be reached this week in Algeria.

Further, the greenback caught a sudden bid-wave against is major peers over the last, which also collaborated to the downside in the major. Attention now turns towards the US consumer confidence data and Fed speak due later in the NA session for further momentum.

GBP/USD Levels to consider            

The pair has an immediate resistance at 1.2995 (5-DMA), above which 1.3033 (daily R2) and 1.3090 (Sep 23 low) would be tested. On the flip side, support is seen at 1.2943 (Sept 21 low) below that at 1.2900 (key support) and at 1.2872/63 (Aug 16 & 15 low).