GBP/USD reverses a brief dip below 1.3100, US data eyed

The GBP/USD pair reverses a part of intraday losses and rises back above 5-DMA support-turned resistance at 1.3113, as the recovery in the US dollar against its main competitors lost legs. The USD index eases to 93.30, having hit daily tops at 93.39.

The higher-yield currency GBP ignored a renewed risk-aversion wave that gripped the European markets, following the statement released by Kremlin over the US sanctions.

The sentiment around Cable also remains underpinned on the back of upbeat UK net lending to individuals data, as attention now turns towards the US Chicago PMI and pending home sales data for further trading impetus.

GBP/USD levels to consider             

“A downward acceleration below 1.3090, should lead to further intraday declines, first towards the 1.3050/60 region, and once below this last, towards 1.3010. The immediate resistance is 1.3130, with a more relevant one at 1.3158, the yearly high set last week. Gains beyond this last seem unlikely for today, but would result in an approach to the 1.3200 region,” Valeria Bednarik, Chief Analyst at FXStreet explains.