GBP/USD offered near 1.31 handle

GBP/USD snapped two-day winning streak as it turned lower from 1.3091 to print a session low of 1.3052 levels.

Rejected at 61.8% Fibo

The drop to 1.3052 marked a failure to sustain above 1.3084 (61.8% of 1.2865-1.3437) levels. Dollar made a modest recovery in Asia; however the move lacked a clear fundamental trigger. Moreover, the uptick in the USD/JPY could have triggered a wave of correction in the US dollar.

The UK data docket is light. Thus the pair is at the mercy of the broader market sentiment. Later in the day, US preliminary PMI and comments from Fed’s Harker, Mester and Lockhart could influence the pair.

GBP/USD Technical Levels

A move back above 1.3084 (61.8% of 1.2865-1.3437) would expose 1.3121 (previous day’s high) above which 50-DMA of 1.3149 could be put to test. On the lower side, breach of 5-DMA support of 1.3035 could yield a test of 1.30 (zero figure) under which the pair could target 1.2956 (Aug 9 low).