GBP/USD bounces-off 1.2850, re-takes 1.2900

The selling pressure behind the pound eased somewhat in the mid-European session, allowing a recovery in the GBP/USD pair from 1.2850 barrier.

GBP/USD sees a 40-pips recovery

Currently, GBP/USD now drops -0.48% to 1.2889, struggling hard to extend above 1.29 handle. The cable stalled its downslide and now makes a minor-recovery attempt as the USD bulls take a breather and consolidate the upside ahead of the US labour market conditions report due later in the NA session.

The GBP/USD pair remains vulnerable as markets are pricing-in a BOE rate cut this week, in a bid to combat post-Brexit economic fallout. Meanwhile, focus now remains on the BOE’s inflation report hearing due tomorrow, with BOE governor Mark Carney’s speech eagerly awaited.       

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 1.2951/50 (daily low/ psychological levels) below that at 1.2926/12 (5-DMA/ post-NFP low).