GBP/USD flirting with session highs near 1.2730

The Sterling is posting moderate gains vs. the buck on Tuesday, lifting GBP/USD to the area of daily highs around 1.2730.

GBP/USD eyes on BoE, Brexit

Cable keeps the rally well and sound so far this week, advancing for the fifth consecutive session despite the effervescence in the domestic political scenario and amidst mixed headlines from the Brexit negotiations.

Against the backdrop of the current up trend, GBP should be under scrutiny today in light of the release of the BoE’s financial stability report (FSR) and subsequent press conference by Governor M.Carney.

Consensus among investors expect Carney to pour some cold water over expectations of potential tightening by the ‘Old Lady’ sooner than initially estimated, particularly following last week’s hawkish comments by A.Haldane.

In the data space, CBI’s survey is only due. Across the pond, US home prices tracked by the S&P/Case-Shiller index are due seconded by CB’s consumer confidence and speeches by Chief J.Yellen, Philly Fed P.Harker (voter, hawkish) and Minneapolis Fed N.Kashkari (voter, dovish).

GBP/USD levels to consider

As of writing the pair is up 0.07% at 1.2732 and a breakout of 1.2759 (high Jun.26) would open the door to 1.2786 (20-day sma) and then 1.2832 (55-day sma). On the other hand, the next support aligns at 1.2640 (100-day sma) followed by 1.2587 (low Jun.21) and finally 1.2548 (200-day sma).