GBP/USD: 100-pips recovery from 31-yr lows stalls ahead of 1.2900

GBP/USD’s recovery attempts from three-decade lows lost pace just ahead of 1.29 barrier, with the major now consolidating wild moves around 1.2880 region as we head into early Europe.

GBP/USD bounces-off 1.2797

Currently, GBP/USD drops -1.07% to 1.2880, unable to take on the recovery above 1.29 handle. Having witnessed a volatile Asian session this Wednesday, the bears appear to have taken a breather, allowing the GBP/USD pair to catch a breath of air after a sharp sell-off to a new thirty-one year low struck at 1.2797 earlier on the day.

The cable was pounded amid resurgence of Brexit-related concerns on the UK economy, with markets almost pricing-in a recession. Further, the recent selling spiral was triggered by BOE Governor’s Carney’s remarks that the central bank is ready ease, given the Brexit decision.

Looking ahead, amid a lack of fundamental triggers from the UK docket, the broader market sentiment will continue to drive the major ahead of the US ISM services data and FOMC minutes.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3000 (psychological levels), above which 1.3066 (Daily pivot) would be tested. On the flip side, support is seen at 1.2797 (multi-year low) below that at 1.2750 (1985 lows).