GBP/USD fades a spike to 1.2970 in early Europe

Having bottomed out near 1.2930 region in early Asia, GBP/USD took on the upside back towards 1.30 handle, before meeting fresh supply just ahead of 1.2970 and now wavers closer to the mid-point of 1.29 handle.

GBP/USD fails at daily R1

Currently, GBP/USD trades modestly flat at 1.2956, having faced strong selling pressure at 1.2971, session highs. The cable wipes-out most gains as we head into early Europe, with markets completely ignoring risk-on sentiment amid rallying Asian equities, led by upbeat US jobs data.

The GBP/USD pair is seen retracing gains as markets continue to remain worried over Brexit-related uncertainty, especially ahead of this week’s BOE monetary policy decision and minutes.          

Amid a data-empty UK docket, the major will get influenced by the sentiment around the global equities, while any Brexit-related news flow will also a major bearing on the pair.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3000 (psychological levels), above which 1.3087 (10-DMA) would be tested. On the flip side, support is seen at 1.2941 (5-DMA) below that at 1.2912 (post-NFP low).