GBP/USD bounces off lows, regains 1.2900

After testing the 1.2800 neighbourhood, GBP/USD has now managed to retake the 1.2900 and beyond.

GBP/USD finds support at 1.2800

‘Brexit’ fears have intensified during the Asian session on Wednesday, dragging the pair to levels last seen in April 1985 around the 1.2800 handle along with a solid demand for the greenback.

The scenario around Sterling seems to have deteriorated in the last hours following the BoE’s Financial Stability Report and the speech by Governor Carney on Tuesday, all signaling that looser monetary conditions are in the pipeline.

Nothing worth mentioning data wise in the UK, while the ADP report, ISM Non-manufacturing , trade balance figures and the FOMC minutes are all due across the pond.

GBP/USD levels to consider

As of writing the pair is losing 0.89% at 1.2909 facing the immediate support at 1.2797 (low Jul.6). On the other hand, the initial up barrier is located at 1.3118 (low Jun.27) followed by 1.3535 (low Jun.29) and finally 1.3911 (20-day sma).