GBP/USD rejected near 1.2850, back to test 1.2800

The GBP/USD pair is seen trading quite choppy so far this session, oscillating in a 40-pips narrow range, as bulls consolidate yesterday’s massive rally to 1.29 handle and beyond.

The spot manages to hold well above 1.28 handle, having found strong support near 1.2810 region, as latest comments from the UK PM Theresa May on the upcoming general elections continue to underpin the sentiment around the GBP.

However, the upside seems capped near 1.2855/60 band, in the wake of persisting broad based US dollar recovery from three-week troughs. The US dollar regained footing somewhat, as markets reacted positively to the US treasury secretary Mnuchin’s comments, citing that the US President Trump is not try to talk down the dollar.

Focus now remains on the Fed’s Beige book release later in the NA session, in absence of fresh fundamental drivers from both the UK and US today.

GBP/USD Levels to consider            

Momentum above 1.2860 (daily high) could lift the pair above 1.2912 (flash rally high), beyond which a test of 1.2950 (psychological levels) is imminent. Conversely, a break below 1.2800 (round number), leading to a subsequent break below 1.2754/50 (daily pivot) is likely to drag the pair towards testing its next support near 1.2700 zone.