GBP/USD clings to gains above 1.3300
- Cable remains sidelined above 1.3300.
- Brexit concerns keep lingering.
- Attention to Carney, Irish ‘hard border’.
The Sterling keeps the upbeat tone on Tuesday and is now pushing GBP/USD to the 1.3325/20 band, posting marginal gains for the day.
GBP/USD upside capped near 1.3380
Cable’s rally appears to have found a tough resistance in Monday’s tops around 1.3380, easing some ground along with some recovery in the greenback and renewed Brexit concerns.
In fact, the greenback has given some signs of life yesterday following last week’s sharp pullback, helped at the same time by a rebound in yields of the key US 10-year reference.
Back to Brexit, fresh concerns over the so-called Irish ‘hard border’ reignited some jitters over the ongoing negotiations and appear to be capping the upside for the time being.
Further news around GBP saw BoE’s M.Carney arguing that banks should be able to lend through disorderly Brexit. Carney is giving a press conference under the BoE’s Financial Stability Report.
Nothing scheduled today in the UK docket, while the speech by next Fed Chief J.Powell should grab all the attention later in the NA session.
GBP/USD levels to consider
As of writing, the pair is up 0.09% at 1.3328 and a break above 1.3382 (high Nov.27) would open the door to 1.3447 (high Sep.6 2016) and finally 1.3658 (2017 high Sep.20). On the other hand, the next down barrier aligns at 1.3279 (low Nov.24) seconded by 1.3267 (10-day sma) and then 1.3210 (21-day sma).