GBPUSD Reclaims 1.34 Handle Supported By Positive UK Macro Data

The GBP/USD is trading up above the 1.3400 handle ahead of the upcoming London market session after being buoyed by improved risk sentiment. The Sterling is bumping into fresh highs for the month after bottoming out on May 29th at a low of 1.3204, and the GBP/USD is now peaking just above the 1.3400 major levels. Broader Dollar weakness on the back of improving market sentiment could prove to be a boon for the hurting Pound, which may get bolstered further on the news that the European Central Bank (ECB) may be getting closer to being willing to discuss the idea of preparing for QE wind down. Still a far cry from definitive action from the central bank, but news that will definitely send traders into the buy button across the European continent, and dragging the GBP higher as a result.  However the last two trading session saw positive outcome in major macro data releases and US greenback could gain the upper hand today if the British pound loses ground or if UK’s macro data scheduled to release later today turns out bearish.

GBPUSD Well Supported

Traders are keeping the ears to the ground for Brexit related headlines as well. However, UK’s PM May is said to have been planning on delaying the publication of the government’s blueprint until after this month’s leaders’ summit. Upcoming London session has little GBP data to spur on a continuation, could see a correction back into lower channel boundary.

The upcoming session sees a couple of speeches from BOE Monetary Policy Committee member Silvana Tenreyro speaking at 10:40 GMT and MPC member Ian McCafferty speaking at 16:00 GMT. Little else is on the docket for the London session, and traders’ focus will be shifting to the upcoming US Trade Balance figures alongside Nonfarm Productivity and first quarter Unit Labor Costs scheduled to release at 12:30 GMT. From technical perspective the pair keeps pushing higher, and while a definitive breakthrough is yet to be seen, readings in the short-term support additional gains ahead. Expected support and resistance for the pair are at 1.3370 / 1.3335 and 1.3420 / 1.3460 respectively.