GBP/USD pushes higher, gearing up for 1.31?

GBP/USD keeps gathering upside traction on Wednesday, bouncing off the 1.30 neighbourhood to the current 1.3180/85 band.

GBP/USD stronger on USD weakness

The pair has gained over a cent since yesterday’s drop to the mid-1.2900s, following the generalized better tone in the risk associated assets in response to a broad based offered tone in the greenback.

Furthermore, GBP seems to have recovered the smile today after five consecutive losses, although the recent dovish tone from the Bank of England keeps limiting potential rallies in spot.

GBP/USD levels to consider

As of writing the pair is gaining 0.56% at 1.3075 and a break above 1.3373 (high Aug.3) would expose 1.3481 (high Jul.15) and finally 1.3535 (high Jun.29). On the other side, the initial support lines up at 1.2954 (low Aug.9) seconded by 1.2849 (low Jul.11) and then 1.2796 (2016 low Jul.6).