GBP/USD: Weaker around 1.3000 in early Europe

The pound was one of the worst performers in the Asian session this Wednesday, with the GBP/USD pair now consolidating the losses as we head into early European trading.

GBP/USD supported at 5-DMA

Currently, GBP/USD trades -0.18% lower at 1.2999, having posted session lows at 1.2992, just ahead of the 5-DMA support placed at 1.2990. The cable is seen moving back and forth in a narrow range, awaiting fresh impetus from the upcoming European session.  

The major remains under pressure as the USD bulls remain on the front foot amid slightly hawkish comments from Fed’s Williams, while reports of UK’s month end subsidy payment to EU also continues to remain a drag on the GBP.

Markets now look forward to BOE MPC member Shafik’s speech due later in the European session ahead of the US durable goods data and Fed speaks on the cards in the American session.

GBP/USD Levels to consider            

The pair has an immediate resistance at 1.3026 (hourly 200-SMA), above which 1.3050 (psychological levels) and 1.3090 (Sep 23 low) would be tested. On the flip side, support is seen at 1.2943 (Sept 21 low) below that at 1.2900 (key support) and at 1.2872/63 (Aug 16 & 15 low).