GBP/USD off-lows, regains 1.2350 ahead of G20

The GBP/USD pair has witnessed two-way trades so far this session, initially breaking the Asian consolidation box to the upside and reached session tops near 1.2370. Thereafter, the spot met fresh supply amid notable USD demand and negative European equities as London traders hit their desks.

Over the last hours, cable is seen making minor-recovery attempts from 1.2325 lows, and rises back above 1.2350 barrier, as the renewed uptick in the greenback versus its main competitors appears to have fizzled out, despite higher treasury yields.

The major also finds support from a hawkish twist in the BOE policy outcome, in the wake of the BOE policymaker Kristin Forbes dissent in the favor of a rate hike.

Meanwhile, attention now turns towards the G20 and Trump-Merkel meeting scheduled later today for fresh momentum on the spot. Also, a flurry of US macro updates will be eyed for fresh take on the USD price-action.

GBP/USD could slip to 1.2300 on profit taking, G20 and Trump meeting ahead

GBP/USD Levels to consider

Slobodan Drvenica at Windsor Brokers Ltd noted, “Two-day rally peaked at 1.2375, being so far capped by falling 30SMA and just ticks ahead of base of daily Ichimoku cloud (spanned between 1.2379 and 1.2435). Break above the cloud would generate another strong bullish signal for further retracement of 1.2568/1.2107 downleg.”

Meantime, consolidative/corrective phase could be expected ahead of fresh attempts higher. Broken 20SMA marks immediate support at 1.2315, with extended dips to hold above 1.2240 zone (yesterday's low/daily Tenkan-sen line),”Slobodan added.

AG Markets Review