GBP/USD – Enticing bulls by deflating to 1.30

Having retreated from NY session high of 1.3027 the GBP/USD pair now floating around 1.30 and is enticing those who missed the yesterday’s move higher from 1.29385 to 1.3027.

Eyes US data and Yellen testimony

UK economic calendar is empty; hence the pair is left at the mercy of the broader market sentiment ahead of the US durable goods orders release and Yellen testimony. News flow related to Germany’s Deutsche Bank and oil price action could influence broader market sentiment.

Meanwhile, US durable goods report is likely to show corporate spending dropped 1.5% in August. Yellen, in her testimony, is unlikely to offer anything different than what we heard during last week’s FOMC press conference.

GBP/USD Technical Levels

The spot was last seen trading just above 1.30 handle. On the higher side, breach of 1.3027 (previous day’s high) could yield 1.3076 (falling trend line drawn from Sep 7 high and Sep 13 high). A violation there would expose 1.3124 (monthly pivot). On the other hand, acceptance below 1.30 would shift risk in favor of 1.2945 (Sep 21 low) and 1.2877 (monthly pivot support).