GBP/USD consolidative near 1.3370, daily highs

The British pound has reverted the initial negative mood and is now lifting GBP/USD to test session peaks in the 1.3360/70 band.

GBP/USD attention to ECB

Spot has recovered part of the ground lost on Wednesday, as the greenback seems to have resumed its downside momentum so far today.

After reaching fresh highs near 1.3450 on Tuesday, the pair’s up move lacked of follow through, sparking a correction lower to the 1.3300 neighbourhood, where decent support seems to have emerged.

Ahead in the session, Cable will keep the attention on EUR/GBP in light of the ECB meeting. Market consensus has ruled out any significant announcements, although bets keep pointing to some modification of the current QE programme.

GBP/USD levels to consider

As of writing the pair is gaining 0.15% at 1.3360 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).