GBP/USD flirting with lows near 1.2930

The Sterling is now surrendering initial gains and has dragged GBP/USD to test the area of daily lows in the mid-1.2900s.

GBP/USD attention to risk trends

Spot is retreating for the second session in a row so far today, coming down from last week’s peaks in the vicinity of 1.3130 following some pick up in the buying interest around the buck.

On the UK’s data front, Mortgage Approvals by BBA are only due today, although the broader risk appetite trends and USD-dynamics remain poised to drive the mood around the pair.

Regarding positioning, GBP speculative longs have increased significantly by around 30K contracts during the week ended on September 20, while net shorts have been trimmed to the lowest level since early July and Open Interest has receded to 7-week lows, all according to the latest CFTC report.

GBP/USD levels to consider

As of writing the pair is losing 0.08% at 1.2945 facing the next support at 1.2863 (low Aug.15) and then 1.2796 (2016 low Jul.6). On the other hand, a breakout of 1.3125 (high Sep.22) would open the door to 1.3447 (high Sep.6) and finally 1.3584 (100-day sma).