GBP/USD eyeing a break above 5-DMA ahead of UK data

The GBP/USD pair is seen consolidating the overnight recovery as we progress towards the European session, with broad based US dollar weakness underpinning the sentiment.

GBP/USD regains 1.3300 and beyond

Currently, GBP/USD advances +0.25% to 1.3329, having posted fresh session highs at 1.3336 in the last hour. The recovery in the GBP/USD pair from Thursday’s sell-off appears to have lost legs in early Europe, with the bulls taking a breather before the next push higher.

Moreover, the cable ignored China CPI miss and now awaits the upcoming UK trade balance data to confirm the UK economy has brushed-off Brexit fallout. Meanwhile, the US dollar’s corrective slide will continue to support the recovery in the GBP/USD pair from 1.3285 levels.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3341 (Sept 7 &5-DMA), above which 1.3377 (Sept 8 high) would be tested. On the flip side, support is seen at 1.3300 (round figure) below that at 1.3282/78 (Sept 8 low/ 10-DMA).