GBP/USD: Choppy around 1.3200 ahead of Fed minutes

The GBP/USD pair is seen fluctuating between gains and losses so far this session, although remains gravitated towards the 1.32 handle, as markets await fresh direction on the release of the key FOMC Sept meeting minutes due later in the NA session today.

GBP/USD finds support near 1.3280

The spot trades directionless amid a lack of fresh fundamental catalysts, however, the GBP bulls continue to cheer yesterday’s solid UK macro news and the recent optimism shown by the UK PM May.

Also, the sentiment around the GBP/USD pair remains somewhat buoyed amid narrowing monetary policy divergence between the Fed and BOE, as money markets are already pricing in more than 75% probability of a Nov BOE rate hike.

Meanwhile, the spot also finds support from ongoing broad USD weakness, as markets remain skeptical over Trump’s tax overhaul plans, as focus now shifts towards Fed minutes for the next direction on the greenback. Ahead of the Fed minutes, the major may take cues from the JOLTS jobs opening data.

GBP/USD Technical View

Haresh Menghani, Analyst at FXStreet noted: “Technically, the pair is holding with mild positive bias and hence, a follow through buying interest beyond 1.3220-25 supply zone could accelerate the up-move towards 1.3265 intermediate resistance ahead of the 1.3300 handle and the next major hurdle near mid-1.3300s.”

On the flip side, weakness back below 1.3180 level might continue to find some support at 50-day SMA, near the 1.3135 region, which if broken would turn the pair vulnerable to slide back below the 1.3100 handle towards 1.3075 (Monday's low) en-route 1.3030-25 area,” Haresh adds.