GBP/USD headed to 1.3050 this week?

Currently, GBP/USD is trading at 1.2911, down -0.30% on the day, having posted a daily high at 1.2948 and low at 1.2901.

GBP/USD has been struggled at the start of May, slightly soft on the 1.29 handle with bears targeting the highs of last week's spike. There is no news due to closed markets for the first of May celebrations/bank holiday but the key data for the UK this week will be the release of April PMIs. elsewhere, the FOMC and nonfarm payrolls will be key for the greenback. 

"CFTC data highlights are that the huge GBP post-referendum short has been cut, but only a bit. Hence the further short-covering we saw last week," explained Kit Juckes, an economist at Societe Generale, adding, "and the market's gone from a huge short in 10year Notes to a sizeable long in a handful of weeks. Bond-land has cleared out the bad positions with the fall in yields, and may be set fair for some new range-building and who knows - a look at the top end of whatever that rage proves to be?"

EUR/GBP: closing in on the 200 hourly ema at 0.8450

GBP/USD levels

Analysts at Scotiabank explained that cable is trading narrowly today but remains well-supported overall near its highest levels since last October and above the recent, sideways consolidation range below 1.29. "We think the GBP can gain a little more ground but we are not, yet convinced that downside risks have been fully eliminated in the longer run. We see major support at 1.2750 now and look for firmer GBPUSD resistance around 1.3050/00."