GBP/USD catching a minor bid above 1.2800, Yellen eyed

After a brief phase of consolidation in the overnight, the GBP/USD pair caught a fresh bid tone, now attempting to extend the break higher towards the key resistances located near 1.2840 levels.

GBP/USD: Will Yellen’s remarks left the USD?

The spot settled yesterday almost unchanged, forming a Doji candle on the daily sticks that indicated a lack of clear direction, as investors eagerly await the Fed Chair Yellen’s speech at Jackson Hole Symposium for fresh direction.

Markets are widely expecting Yellen to announce a Sept QE normalization, however, a signal towards a Dec rate hike from the Fed Chief would provide the much-needed impetus to the American dollar.

Meanwhile, looming Brexit jitters continue to outweigh political uncertainty surrounding the Trump administration, which should keep any upside attempts in check ahead of the US durable goods data.

GBP/USD levels to consider             

Haresh Menghani, Analyst at FXStreet noted: “From a technical perspective, the pair's recovery move was restricted at a previous support, now turned resistance, marked by 38.2% Fibonacci retracement level of 1.2109-1.3269 up-move. Hence, it would prudent to wait for a sustained move beyond the mentioned hurdle before positioning for any additional near-term recovery. However, with technical indicators holding in negative territory, the risk remains tilted to extension of the near-term downward trajectory.”