GBP/USD flirting with session tops near 1.2980

The Sterling is posting marginal gains vs. the greenback at the end of the week, taking GBP/USD to the 1.2980 region, or daily highs.

GBP/USD supported near 1.2940

Cable met a wave of selling pressure on Thursday after comments by UK’s international trade secretary Liam Fox said the UK can ‘survive’ without a free trade deal with the European Union after Brexit, prompting jitters of a ‘hard Brexit’ scenario to re-surface.

Fox’s comments triggered a sell-off of nearly a cent in the pair from the area near 1.3030, which seems to have found decent support in the 1.2940 region for the time being. 

Today, spot is navigating a narrow range still below the psychological 1.3000 handle amidst a generalized consolidative theme in the FX G10 universe, as market participants continue to digest yesterday’s ECB meeting and the plunge of the greenback on another Trump-related issue.

Event-wise in the UK, the government’s accounts figures are due for the month of June, while nothing is scheduled in the US calendar.

GBP/USD levels to consider

As of writing the pair is gaining 0.05% at 1.2980 and a break above 1.2999 (23.6% Fibo of 1.2587-1.3127) would aim for 1.3033 (high Jul.20) and then 1.3127 (2017 high Jul.18). On the downside, the immediate support aligns at 1.2933 (low Jul.20) followed by 1.2921 (38.2% Fibo of 1.2587-1.3127) and finally 1.2910 (short term support line).