GBP/USD consolidative below 1.2900

The Sterling is alternating gains with losses vs. the greenback at the beginning of the week, taking GBP/USD to the 1.2870/80 band ahead of the European opening.

GBP/USD softer on USD buying

Cable stays within the recent range amidst some recovery around the greenback, while markets’ attention remains on the US-South Korea joint military exercises today and the Jackson Hole Symposium later in the week.

The pair continues to stabilize in the lower end of the range so far, finding quite decent contention in the 1.2830 region, while another attempt to test/surpass the 1.3000 handle appears somewhat unlikely in the current context.

In the UK data space, the salient event of the week will be the release of the advanced GDP figures for the second quarter (Thursday). Consensus expects the economy to have expanded at an annualized 1.7% during that period.

GBP/USD levels to consider

As of writing the pair is losing 0.06% at 1.2870 and a break below 1.2829 (low Aug.18) would open the door to 1.2808 (low Jul.12) and finally 1.2747 (76.4% Fibo of 1.2587-1.3266). On the upside, the next hurdle aligns at 1.2920 (high Aug.18) followed by 1.2932 (10-day sma) and finally 1.3007 (38.2% Fibo of 1.2587-1.3266).