GBP/USD catches fresh bids, re-attempts 5-DMA

The GBP/USD pair found fresh bids at the mid-point of 1.29 handle, and climbed back higher in a bid to regain 5-DMA barrier now placed at 1.2997.

GBP/USD unperturbed by weaker Chinese dataflow

Currently, GBP/USD trades +0.15% higher near fresh session highs of 1.2978, bouncing-off session lows hit at 1.2950 levels. The major broke its overnight consolidation phase to the upside and now heads higher towards 1.30 barrier amid renewed selling interest seen behind the greenback across the board, as the USD bulls resort to profit-taking after yesterday’s solid recovery.

Moreover, risk-on moods persist in the Asian session, despite softer Chinese data dump for July, as Thursday’s oil-price recovery continues to underpin the demand for risk assets such as the GBP.

Looking ahead, in absence of relevant economic data from the UK docket today, focus remains on the US economic releases, with the retail sales and consumer sentiment data eagerly awaited.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.2997 (5-DMA), above which 1.3050/66 (psychological levels/ daily R2) would be tested. On the flip side, support is seen at 1.2950 (daily low) below that at 1.2900 (round figure).