GBP/USD trims gains, comes under pressure near 1.3100
- GBP/USD fades the earlier spike to 1.3170.
- Dollar strength keeps weighing on the pound.
- Halifax Index came in above estimates in December.
The sterling is following the rest of the risk-associated assets to the negative territory on Wednesday, dragging GBP/USD to the vicinity of the key support at 1.3100 the figure.
GBP/USD upside capped above 1.3200
Cable is posting marginal losses around the 1.3100 handle on Wednesday and drops for the second session in a row following Tuesday’s rejection from the area just above the 1.3200 mark.
The renewed buying interest in the greenback has been weighing on the pair in the last couple of sessions on the back of alleviating geopolitical concerns (from the Middle East) and the better mood in US yields.
On the domestic scenario, PM B.Johnson will meet European Commission’s new Head U. von der Leyen later today with future EU-UK trade deals on top of the agenda ahead of the Brexit deadline on January 31st.
In the UK docket, house prices tracked by the Halifax Index surprised to the upside today, rising 1.7% MoM during December and 4.0% from a year earlier.
GBP/USD levels to consider
As of writing, the pair is retreating 0.06% at 1.3111 and faces initial hurdle at 1.3212 (high Jan.7) seconded by 1.3284 (high Dec.31 2019) and then 1.3380 (monthly high Mar.13 2019). On the flip side, a breakdown of 1.3053 (2020 low Jan.3) would expose 1.2987 (55-day SMA) and finally 1.2904 (low Dec.24 2019).