GBP/USD re-takes 1.3275 on Fed’s Kashkari

The GBP/USD pair is seen re-attempting gains and now looks to reclaim 1.33 handle, as US dollar remains pressured, with markets digesting latest comments from Fed official Kashkari.

GBP/USD eyes 1.3300

Currently, GBP/USD trades modestly higher at 1.3275, having found strong support near 1.3260 region. The cable’s recovery, following Friday’s slump, appears to have regained traction last hour, with the bulls benefiting from ongoing weakness in the US dollar against its major peers amid Fed rate hike uncertainty.

While the latest views from Minneapolis Fed Chief Kashkari also added to the downbeat sentiment around the buck, and helped GBP/USD regain its recovery mode back towards 1.33 handle.

However, the upside remains restricted in wake of persisting risk-off moods, which weighs on the higher-yielding currencies such as the GBP. Looking ahead, we have a big week in-stored for the major, with the UK CPI figures due on the cards ahead of the BOE decision and US retail sales data.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3290/1.3305 (5 & 10-DMA), above which 1.3334 (Sept 7 high) would be tested. On the flip side, support is seen at 1.3223 (20-DMA) below that at 1.3160 (50-DMA).