GBP/USD stages a solid comeback, re-takes 1.2830

The GBP/USD pair found buyers once again near 1.2770 region, and pulled back sharply from six-week lows, now pushing further beyond 1.28 handle.

GBP/USD: Will it sustain above 1.2800?

The major witnessed volatile moves over the last hours, especially post-European opening, with the bulls fighting back control, despite mixed UK economic releases. Moreover, the risk currency pound ignores fresh selling seen in oil prices, as the European equities recover.

The renewed uptick in cable can be mainly attributed to fresh US dollar selling seen against its main competitors, as treasury yields retreat across the curve. Meanwhile, the USD index turns negative and flirts with daily lows of 97.19, having failed several attempts to take-out stiff resistances lined up near 97.40 region.

However, it remains to be seen if the spot can sustain the recovery, as uncertainty surrounding the upcoming UK election continue to exert downward pressure on the GBP. YouGov poll: UK Conservatives projected to fall 16 seats short of overall majority

Also, upbeat US Chicago PMI and pending home sales data, due to be reported later today, could keep further upside restricted. Focus also remains on the Fedspeaks for fresh hints on a June Fed rate hike.

GBP/USD Levels to consider            

Valeria Bednarik, Chief Analyst at FXStreet noted: “The immediate support comes at 1.2756, the lowest ever since PM May announced the General election, with a break below it exposing the 1.2720 price zone. A recovery beyond 1.2820 on the other hand can see the pair recovering up to 1.2860, but selling interest will likely contain the advance and a trigger a retracement.”