GBP/USD looking for direction around 1.3200

The Sterling is alternating gains with losses on Wednesday, taking GBP/USD to the 1.3200 neighbourhood ahead of the opening bell in the Old Continent.

GBP/USD upside capped near 1.3220

After two consecutive daily advances, Cable seems to have found a tough resistance in the 1.3220 area, coincident with the 10-day sma.

The generalized sell off in the greenback plus some positive headlines from UK politics allowed the pair to bounce off Friday’s lows in the vicinity of 1.3020 (100-day sma) to the 1.3220 area seen during the Asian trading hours.

Ahead in the day, and absent releases in the UK docket, spot should be under pressure in light of the publication of the FOMC minutes from the latest meeting. In addition, Chicago Fed C.Evans (voter, centrist) and San Francisco Fed J.Williams (2018 voter, hawkish) are due to speak, keeping the focus of attention on the buck.

GBP/USD levels to consider

As of writing the pair is retreating 0.12% at 1.3188 and a breakdown of 1.3137 (55-day sma) would aim for 1.3027 (low Oct.6) and then 1.3023 (100-day sma). On the flip side, the next up barrier lines up at 1.3232 (10-day sma) seconded by 1.3262 (23.6% Fibo of the 2017 up move) and finally 1.3352 (21-day sma).