GBP/USD awaits range breakout, eyes CBI data

GBP/USD regained bid tone on Monday as suggested by the options activity, although the bullish move ran out of steam near Friday’s high of 1.2918. 

Awaits range breakout

The spot has been restricted to a narrow range of 1.2920-1.2830 for the last four trading days. The daily chart shows, the range has been established around the 100-DMA, which currently stands at 1.2877 levels. Furthermore, the spot continues its romance with the trend line sloping upwards from the March low and June low. 

Focus on UK CBI data

The UK CBI Industrial trends survey - orders index for Aug due at 10:00 GMT is seen printing at 10.00 m/m. A better-than-expected CBI data could yield an upside break of the four-day trading range. On the other hand, the rise in the treasury yields and the weak CBI data may result in a downside break of the trading range. 

GBP/USD Technical Levels

FXStreet Chief Analyst Valeria Bednarik writes, “the pair settled at the upper end of its latest range, but further gains can't be confirmed just yet, as the pair settled above a still flat 20 SMA, while technical indicators remain within neutral territory, with no certain directional strength. An upward acceleration through 1.2930 could see the pair extending up to 1.2965, but it would take a clear break above this last to confirm additional gains ahead, something quite unlikely at the time being.”