GBP/USD regains 1.3200 ahead of GDP, Yellen

The GBP/USD pair appears to regain momentum and bounces back above 1.32 handle amid a corrective slide seen in the greenback as we progress towards the key risk event for the week, Yellen’s speech.

GBP/USD: Focus remains on Yellen

Currently, GBP/USD trades +0.11% higher at 1.3207, bouncing-off a brief dip below 1.32 handle. The cable manages to cling onto gains in the Asian trades as the US treasury yields trade in the red amid increased uncertainty over Fed’s rate hike outlook, with all eyes focused on Fed Chair Yellen’s comments due later in the NA session.

Fed Chair Yellen is expected to come out not so hawkish, while the macro-data dependent stance is likely to remain intact.  Meanwhile, limited reaction is expected on the US and UK GDP reports, as the Jack Hole Symposium is likely to emerge the main market moving driver for the major today.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3248 (daily R1), above which 1.3300 (round figure) would be tested. On the flip side, support is seen at 1.3136/28 (10 & 50-DMA) below that at 1.3100 (round number).