GBP/USD fades a spike to 1.3215 in Asia

A renewed bout of buying interest seen behind the GBP/USD pair appears to have waned near 1.3215 region, sending the major back below 1.32 handle.

GBP/USD: Upside capped by weaker GBP/JPY

Currently, GBP/USD rises +0.24% to 1.3195, unable to resist above 1.32 handle. The cable remains well bid, although trimmed gains over the last hour, largely on the back of heavy GBP/JPY selling expectant of the BOJ decision.

Moreover, the major remains supported on the back of broad based US dollar weakness and a minor-recovery attempt seen in the oil prices. Focus now remains on the BOJ decision, which will have major impact on the USD moves and hence, eventually on the GBP/USD pair. While the US GDP and consumer sentiment data due later in the NA session will be also closely eyed.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3249 (Jul 28 top), above which 1.3300 (round figure) would be tested. On the flip side, support is seen at 1.3150 (psychological levels) below that at 1.3103 (daily S1).

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