GBP/USD off-highs, reverts to 1.3250 ahead of BOE

The GBP/USD pair stalled its overnight bullish momentum near 1.3280 region, and now extends its retreat back towards the mid-point of 1.32 handle as risk-off seeps back into the markets.

GBP/USD on its way to 20-DMA at 1.3240

Currently, GBP/USD gains +0.14% to trade at 1.3254, retreating sharply from a spike to 1.3279 highs. The cable is seen reversing a part of yesterday’s rebound as the demand for higher-yielding assets is on the decline amid persistent risk-averse market conditions, triggered by a fresh sell-off in the Asian equities.

Moreover, markets seek to lock-in gains ahead of the key risk event for today, the BOE rate decision accompanied by the minutes of the meeting. The BOE is widely expected to leave its monetary policy settings unadjusted at its policy announcement due later on the day, and remain in a wait-and-see mode, assessing the latest economic data, which suggested that the British economy may have brushed-off Brexit concerns.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3279/94 (daily high/ 10-DMA), above which 1.3350 (psychological levels) would be tested. On the flip side, support is seen at 1.3240 (20-DMA) below that at 1.3163 (50-DMA).