GBP/USD fades an uptick to 1.2930, UK PM May, BOE speakers eyed

The GBP/USD pair ran into fresh sellers, after it failed once again failed to take out another option-related tranche at 1.2930, knocking-off the rate back to test 1.29 handle.

GBP/USD: Eyes on UK PM May, BOE’s Broadbent

The major reversed a part of the renewed uptick rapidly, as the bulls take a backseat ahead of the key speeches by BOE policymakers ahead of the UK PM May’s address.

At the top of the hour, we have the speech by the BOE Chief Economist Haldane, who switched to a hawkish stance on the interest rates last month, and hence, the spot awaits fresh hawkish hints for the next push higher.

Also of note remains dovish BOE MPC member Broadbent’s remarks (due at 1230GMT), and therefore, the GBP/USD pair has entered a phase of upside consolidation, with markets refraining to place any directional bets on the GBP.

However, the main market moving event for the spot today is likely to be the UK PM Theresa May’s speech, where she is expected to urge to other parties to reach a consensus, in order to secure a better Brexit deal.

Meanwhile, US NFIB small business optimism deteriorated in June to 103.6 versus 104.5 previous, keeping the recovery capped in the US dollar against its major peers. Data-wise, the focus now remains on the US JOLTS job openings and wholesale inventories data due later in the NA session.

GBP/USD levels to consider             

Valeria Bednarik, Chief Analyst at FXStreet noted, “The pair needs to advance beyond the mentioned high to gain further ground, up to 1.2960 first and towards 1.3000 later on the day, with selling interest probably aligned around this last. To the downside, 1.2880 is an immediate short term support with a stronger one being around 1.2850/60, where the pair has the 38.2% retracement of the same rally and this week low.”