GBP/USD depressed near 1.3030, eyes US data for fresh impetus

The GBP/USD pair stalled its overnight decline in Asia, and since then consolidates the downside near 1.3030 region, as investors await fresh impetus from the upcoming US macro data for further direction.

GBP/USD: Upside remains capped below 1.3050

The spot remains better offered so far this session, as broad based US dollar recovery combined with the latest softer UK CPI data continue to exert bearish pressure on the prices.

Moreover, no fresh hints offered by the BOE Governor Carney in the US last session, also keeps the pound undermined against its American rival. BoE's Carney: Big picture on inflation remains same, fall in GBP pushing up prices

Furthermore, the rebound seen in Treasury yields dulls the attractiveness of the GBP as an alternative higher-yielding assets. Meanwhile, Trump’s Healthcare bill failure induced poor risk environment also adds to the selling bias seen around Cable.

Looking ahead, the major is expected to remain under pressure, as broad USD recovery is likely to extend ahead of the US housing datasets, while a lack of fundamentals drivers from the UK docket should also leave the pound largely subdued.

GBP/USD levels to consider             

Karen Jones, Analyst at Commerzbank noted, “GBP/USD yesterday charted a key day reversal. Yesterday’s price action constituted a key day reversal (only just) and we note that the new high was accompanied by a divergence of the daily RSI and weekly RSI. We are starting to think that we have seen a false break higher and would allow for a dip back to the 1.2885 near term uptrend. It will need to close below here in order to negate upside pressure and retarget 1.2775/50. Above 1.3126 will target the 1.3446/60 September 2016 high. Key support remains 1.2775/50.”