GBP/USD unable to gather traction near 1.3000

The British Pound is extending its consolidative pattern today, relegating GBP/USD to trade within a tight range around the 1.3000 handle.

GBP/USD gains capped near 1.3100

The pair has returned to the 1.3000 neighbourhood after a failed attempt to retake 1.3100 and above on Wednesday, as the US dollar has managed to somewhat revert the bearish note that has been prevailing since early in the week.

With no scheduled releases today in the UK docket, spot will look to the broader risk appetite trends and the USD-dynamics for direction. In the meantime, the underlying tone in GBP remains tilted to the downside after the recent dovish message from the BoE and the blurred prospects for the UK economy after the ‘Brexit’ vote.

GBP/USD levels to consider

As of writing the pair is down 0.05% at 1.3005 and a breach of 1.2954 (low Aug.9) would open the door to 1.2849 (low Jul.11) and then 1.2796 (2016 low Jul.6). On the flip side, the next resistance lines up at 1.3156 (20-day sma) followed by 1.3373 (high Aug.3) and finally 1.3481 (high Jul.15).