GBP/USD in red, looking to retain 1.3000

The Sterling is following the rest of the risk-associated universe on their way south on Wednesday, with GBP/USD clinging to the 1.3000 area amidst USD strength.

GBP/USD gains capped near 1.3030

The pair is losing ground for the first time after two consecutive advances, running out of steam in the 1.3030 area against the backdrop of a now persistent buying interest surrounding the greenback.

Spot has managed to find traction after a test of recent lows near 1.2900 the figure in response to the abrupt upside in EUR/GBP and the initial selling bias prevailing around USD.

On GBP’s positioning side, it is worth noting the climb of speculative longs by around 30K contracts during the week ended on September 20, trimming net shorts to the lowest level since early July according to the latest CFTC report. In the same line, Open Interest has retreated to 7-week lows.

Absent releases in the UK docket, all the attention will shift to the USD, as Chair J.Yellen is expected to testify before the House Panel, followed by Durable Goods Orders and speeches by St. Louis Fed J.Bullard (voter, neutral), Chicago Fed C.Evans (voter 2017, dovish) and Cleveland Fed L.Mester (voter, hawkish, and one of the triple dissenters at the last FOMC meeting).

GBP/USD levels to consider

As of writing the pair is losing 0.06% at 1.3015 facing the next support at 1.2912 (low Sep.23) ahead of 1.2863 (low Aug.15) and then 1.2796 (2016 low Jul.6). On the other hand, a breakout of 1.3125 (high Sep.22) would open the door to 1.3166 (20-day sma) and finally 1.3447 (high Sep.6).