GBP/USD inter-market: Recovery attempts above 1.3000 likely to be short-lived

GBP/USD extends its downside consolidation phase around 1.30 handle into a third-day so far this week, with markets considering every attempt to sustain above 1.30 handle as a good selling opportunity.

The cable continues to remain under pressure largely on the back of persistent US dollar strength, backed by markets pricing-in a Clinton win after the first US presidential election debate. While reports of UK’s month end subsidy payment to EU also remains one of the key catalyst behind the bearish momentum in the major.

Meanwhile, the latest leg lower in the GBP/USD pair is mainly driven by the dovish comments from BOE deputy governor Shafik, who noted that more stimulus will be required ‘at some point’, while adding that the central bank could also expand its asset purchase program.

However, the losses remain capped as the bulls find support from the yield differential between 10-year treasury and Gilt yields tilting in favor of the GBP. Later today, the major is likely to remain pressured as the greenback is likely to pick-up further strength of a string of Fed speaks and US durable goods data due later in the NA session.