STERLING RECOVERY UNDERWAY
The GBPUSD pair has started the new trading week with a renewed bid tone, hitting 1.3047 during the European session, boosted by EURGBP selling and overall demand for sterling above the key 1.3010 level.
Going forward, economic data on Wednesday should set the weekly directional bias for the GBPUSD pair, with second quarter United Kingdom GDP released, and the Federal Reserve interest rate decision and policy statement out later in the U.S session.
The GBPUSD pair has turned bullish in the short and medium term, and trades above the daily pivot point, currently located at 1.2990, and the calculated weekly pivot point, at 1.3018.
To the upside, intraday GBPUSD resistance is found at the current daily price high, at 1.3047. Further resistance is found at the 1.3080 level, and the 2017 price high, at 1.3125.
Support the GBPUSD pair is currently located at the M5 time frame, 200 period moving average, at 1.3008, with the daily pivot point offering further support, at 1.2990. Below 1.2990 level, the H4 time frame 100 period moving average offers strong daily support at 1.2962.