GBP/USD clings to gains near 1.3350, ECB eyed

Sterling is now managing to keep the trade in the positive territory following yesterday’s retracement, with GBP/USD hovering over the mid-1.3300s.

GBP/USD bolstered by USD weakness

The pair shed around a cent since recent tops in the mid-1.3400s (Tuesday/Wednesday) following a pick up in the buying interest around the greenback on Wednesday.

Furthermore, and adding to GBP selling, market participants have perceived yesterday’s BoE Inflation Report Hearings as somewhat dovish after Governor Carney and other MPC members coincided that the central bank is ready to incur in further easing in case of need. On the bright side, it seemed that ‘Brexit’ fears have been somewhat overestimated, although it is still premature to evaluate such a scenario.

Nothing scheduled data wise in the UK docket today, while all the attention will be on the ECB meeting and the performance of the single currency, particularly via EUR/GBP.

GBP/USD levels to consider

As of writing the pair is gaining 0.07% at 1.3349 and a breakout of 1.3447 (high Sep.6) would open the door to 1.3481 (high Jul.15) and then 1.3646 (38.2% of the post-Brexit down move). On the other hand, the immediate support lines up at 1.3205 (support line off July’s top) followed by 1.3167 (20-day sma) and finally 1.2863 (low Aug.15).