GBP/USD off lows, near 1.3070 ahead of UK data

The Sterling is following the rest of the risk-associated assets, now taking GBP/USD to the 1.3070/75 bans ahead of the opening bell in Euroland.

GBP/USD focus on UK releases

While UK markets are slowly returning to normalcy after Monday’s bank holiday, the pair remains under pressure below the 1.3100 handle, as the march north of the greenback remains unabated so far.

Extreme positioning (according to the latest CFTC report), potential ‘Brexit’ consequences and looser monetary conditions by the Bank of England continue to weigh on GBP for the time being, capping gains and leaving the door open for another visit to levels below the psychological support at 1.3000.

Later in the session, UK’s docket includes: Mortgage Approvals, M4 Money Supply, BoE Consumer Credit and Net Lending to Individuals.

GBP/USD levels to consider

As of writing the pair is losing 0.24% at 1.3073 facing the next support at 1.3000 (psychological level) followed by 1.2863 (low Aug.15) and finally 1.2849 (low Jul.11). On the other hand, a breakout of 1.3208 (resistance trend line off July’s high) would open the door to 1.3321 (23.6% of the post-Brexit down move) and then 1.3373 (high Aug.3).