The GBP/USD pair witnessed volatile moves in the European session this Tuesday, now making minor-recovery attempts from two-day troughs struck previously at 1.2914 levels.
GBP/USD: Fails to sustain a break above 5-DMA near 1.2950
The spot extended its gradual recovery mode from the US last session and recorded a high of 1.2961, before meeting fresh supply in Europe, which knocked-off cable sharply lower towards 1.29 handle.
The dip in the major was largely on the back of an upward spike in the buck across the board, with shorter-duration treasury yields on the rise amid a better risk-environment
However, over the last hour, the bears loosened their grip, allowing a tepid-bounce in the pair back towards 1.2930 region amid a broad based US dollar retreat back near 99.20 levels.
Looking ahead, markets now await the US economic releases and sentiment on the Wall Street for fresh momentum on the prices. Besides, speeches from the Fed officials Rosengren and Kaplan will also hog the limelight.
GBP/USD Levels to consider
A break above 1.2947/53 (5-DMA/ daily pivot) could lift the pair above 1.2990 (7-week high), beyond which a test of 1.3018 (classic R2/ Fib R3) is imminent. Conversely, a break below 1.2914 (daily low), leading to a subsequent break below 1.2900 (round figure) is likely to drag the pair towards testing its next support near 1.2867 (20-DMA).