GBP/USD attempts recovery above 1.3050

The bid tone behind the US dollar eased a bit in the European morning, allowing a tepid-recovery in the GBP/USD pair back towards 1.3075 region – support-turned resistance.

GBP/USD recovers as USD buying stalls

Currently, GBP/USD now drops -0.18% to 1.3053, having found static support near 1.3035 zone. The cable is seen making minor-recovery attempts largely on the back of stalled buying in the greenback against its major competitors, with the USD index now consolidating the upside around 94.85, up +0.40% on the day.

However, the recovery looks fragile as the oil prices continue to extend losses and trigger a renewed risk-aversion wave across the financial markets, which will weigh down on the higher-yielding currency GBP. Both crude benchmarks sink almost 2% so far this session, while the European equities set-off the week on a subdued tone.

Markets now eagerly await the US macro releases viz., housing data, durable goods and GDP numbers ahead of the Jackson Hole Symposium scheduled later in the week, for further momentum on the prices.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3138 (50-DMA), above which 1.3186 (2-week top) would be tested. On the flip side, support is seen at 1.3010 (10-DMA) below that at 1.2976 (Aug 17 low).