GBP/USD fades the spike above 1.2900

The Sterling is now giving away part of its initial gains vs. the greenback and is pushing GBP/USD back below the 1.2900 handle.

GBP/USD eyes on USD-dynamics

Cable has retraced the uptick beyond 1.2900 the figure recorded earlier in the Asian session, although it so far manages to stick to daily gains in the 1.2890/85 band amidst thin trading conditions due to today’s bank holiday in the UK.

In the meantime, the pair is advancing for the third session in a row following the continuation of the selling bias around the buck, particularly accentuated after Yellen’s speech at the Jackson Hole Symposium on Friday.

Other that USD-dynamics, Brexit-EU related headlines have been weighing on the sentiment around the Sterling, somewhat capping the upside and leaving the door open for further pullbacks, always against the backdrop of a bearish stance around spot.

Light calendar in the UK ahead in the week, with only Wednesday’s inflation report hearings expected to grab the markets’ attention.

GBP/USD levels to consider

As of writing the pair is up 0.09% at 1.2891 and a break above 1.2927 (high Aug.28) would expose 1.2930 (55-day sma) and then 1.2972 (21-day sma). On the othere hand, the immediate support lines up at 1.2861 (10-day sma) seconded by 1.2774 (38.2% Fibo of 1.2587-1.3266) and finally 1.2770 (low Aug.24).