GBP/USD hovers near critical trend line level

GBP/USD is hovering around the declining trend line (level of 1.3240) originating from July 15 high – Aug 3 high after having clocked a high of 1.3273 in NY session.

Eyes US data

Broader FX markets and Cable are likely to seek direction from the US durable goods orders report due for release later today. Trading activity has been thin on account of summer lull and caution ahead of Yellen’s speech at Jackson Hole event tomorrow.

Sentiment around British Pound is slowly turning against the bears as data released in the UK showed no signs of post Brexit gloom and doom.

GBP/USD Technical Levels

Acceptance above 1.3240 (trend line hurdle) would open doors for test of 50-DMA level of 1.3302. That would be the first move to 50-DMA after Brexit. A violation there could yield 1.3480 (July 15 high). On the other hand, a breakdown of support at 1.3174 (5-DMA) would expose support at 1.3091 (10-DMA) and 1.30 (zero figure).