GBP/USD finds support above 1.2950, remains in range

A stronger US Dollar across the board pushed GBP/USD back under  1.3000. The pair bottomed after the beginning of the American session at 1.2955. It trades at 1.2970/80, 30 pips below yesterday’s closing price. 

The pair continues to consolidate near 1.3000. Today is erasing Friday’s gains. However, the pound is up against its European rivals supported by an improvement in risk appetite. 

GBP/USD range prevails

Earlier in August, the pair dropped dramatically, after the Bank of England meeting and following US employment data. It found support around the 1.2960/70 area, back on Tuesday. 

Since then it has been moving sideways, consolidating at weekly lows. The lower limit of the range could be seen around 1.2940/50 and the upper at 1.3020/30. 

A consolidation below 1.2930 would clear the way for an extension of the slide toward 1.2900. To the upside, if the pound is able to post a daily close above 1.3020/30 (upper limit and also 20-day moving average), the pound could gain support for an extension of the recovery. 

From a fundamental perspective, on Tuesday, inflation data from the United Kingdom will be released and will likely trigger volatility on pound’s crosses.