GBP/USD bounces-off 1.3050, BOE Carney eyed

Fresh bids emerged near the mid-point of 1.30 handle, allowing a minor-bounce in the GBP/USD pair in the last hour, while focus now shifts towards BOE Governor Carney’s testimony scheduled later in the European session.

GBP/USD traded volatile in Asia

Currently, GBP/USD now rises 0.61% to 1.3070, recovering from a brief dip to 1.3049. Heading into Europe, the cable is seen consolidating in the upper band of 1.30 barrier after having witnessed a volatile Asian session this Tuesday.

The GBP/USD pair extended its bullish run towards 1.3100, however, met fresh supply near 1.3090 region and fell sharply to the mid-point of 1.30 handle, before recovering some ground amid broad based US dollar weakness and risk-on market profile.

Next of relevance for the pound remains the hearing of the Treasury Committee at parliament, with the Bank of England (BoE) Governor Mark Carney and other FPC members likely to testify on the BOE’s Financial Stability Report (FSR).

Volatility is likely to pick-up going forward, as markets will continue to find clues on the central bank’s monetary policy stance. Meanwhile, markets are already pricing-in a BOE rate cut at its meeting this Thursday. Besides, a couple of Fed speaks will be also eyed for further USD moves.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3100 (psychological levels), above which 1.3118 (daily R2) would be tested. On the flip side, support is seen at 1.3051 (Daily R1) below that at 1.2972 (5-DMA).