GBP/USD – Brace up for a busy week ahead

GBP/USD is hovering around 1.2936 in Asia, attempting gains as investors brace up for what could be a volatile week for Pound given the first batch of post Brexit data is scheduled for release.

Offered at 1.3035

The quick jump to 1.3035 on Friday post dismal US retail sales data release was quickly undone as Fed rate hike bets hardly changed after data release, while investors lightened GBP holding ahead of the crucial data releases this week.

Volatility in Pound could rise again as we get inflation data, labor market numbers and retail sales figure for the month of July.

GBP/USD Technical Levels

A break above 1.30 handle could yield a move higher to 1.3056 (July 16 low). A day end close above the same could force shorts to reconsider their positioning, thus making way for a further corrective move to 1.3119 (Jun 17 low). On the lower side, a cut below 1.296 would expose support at 1.2875 (July 7 low), under which a re-test of post Brexit low of 1.2789 appears likely.