GBP/USD capped below 1.3050, awaits fresh triggers

The GBP/USD pair extends its overnight consolidative mode into early Europe, keeping its range below the mid-point of 1.3050 levels.

GBP/USD supported amid broad USD weakness

Currently, GBP/USD trades 0.08% higher at 1.3039, easing-off session highs previously posted at 1.1147. The cable’s gradual recovery path lost pace just shy of 1.3050 barrier, with the bulls now consolidating minor gains, before the next move lower.

The upside in the major looks limited as higher treasury yields ahead of Fed’s interest rate decision, is likely to keep the USD underpinned.

Later today, there is nothing of note for the major in terms of economic data from the UK docket, and hence, focus shifts towards the US housing starts and building permits data due for release in the NA session.

GBP/USD Levels to consider            

The pair has an immediate resistance at 1.3089/93 (Aug 17 & Sept 19 high), above which 1.3140 (daily R2) would be tested. On the flip side, support is seen at 1.2992 (multi-week lows) below that at 1.2950 (psychological levels).