GBP/USD spikes to 1.3080, then retreats

The selling pressure behind the greenback picks-up significant strength over the last hour, prompting a renewed uptick in the GBP/USD pair, however, the bulls failed to sustain at higher levels and now reverses a part of the latest leg higher.

GBP/USD eyes Monday’s high?

Currently, GBP/USD jumps +0.0.23% to 1.3062, having posted fresh four-day highs at 1.3079 few minutes ago. The cable advanced further towards 1.31 handle this session, largely backed by aggressive selling seen in the US dollar against its major peers. Meanwhile, the USD index drops -0.27% to 95.20 levels versus a -0.10% drop previously.

However, the upside seems restricted as the European traders assess the latest Fed decision, after the Fed revised lower their rate hike trajectory and also made downward revisions to the economic forecasts.

Markets now await the BOE FPC statement ahead of BOE Carney’s speech for further momentum on the GBP.

GBP/USD Levels to consider            

The pair has an immediate resistance at 1.3112 (10-DMA), above which 1.3146 (50-DMA) would be tested. On the flip side, support is seen at 1.3022 (5-DMA) below that at 1.3000 (round figure).