GBP/USD flirting with highs near 1.3060

The greenback has now eroded initial gains and is helping GBP/USD advance further to the area of 1.3050/60, or daily highs.

GBP/USD within range, attention to FOMC

The pair is looking to extend the rebound from Monday’s lows in the 1.2990 area, now advancing for the second consecutive session as the US dollar keeps struggling to gather traction for the time being.

GBP keeps its upbeat tone amidst a better sentiment in the risk-associated assets ahead of the key FOMC meeting due tomorrow. Speculations on a Fed’s rate hike have been supporting the upside in the greenback as of late, with the probability of higher rates to be announced on Wednesday currently at 12%, according to CME Group’s FedWatch tool.

GBP/USD levels to consider

As of writing the pair is advancing 0.21% at 1.3057 facing the next up barrier at 1/3151 (55-day sma) followed by 1.3198 (20-day sma) and finally 1.3447 (high Sep.6). On the other hand, a break below 1.2990 (low Sep.19) would open the door to 1.2863 (low Aug.15) and then 1.2796 (2016 low Jul.6).