GBP/USD is flat on the day as buyers swoop back in
The pound is finally showing some resilience over the past two days as buyers are seen returning to keep the currency a little bit more afloat for now. Cable found bids around 1.2950 and is now back up to 1.3000 after falling to more than one-month lows.
From a technical perspective, the near-term bias continues to side with sellers for now and buyers will have to at least try to keep above 1.3000 to establish some element of control before pushing towards testing the key hourly moving averages above.
As for a fundamental perspective, it basically comes down to post-Brexit trade concerns versus recent positive economic developments in the UK.
The former is a harrowing prospect for the pound and the recent rhetoric isn't quite helping. However, just bear in mind negotiations have yet to begun and there is time for both the EU and UK to potentially try and play nice to work things out.
As much as we can try to make our own cases on the matter, politicians are not exactly the best people to place your bets on for something to happen or not happen.
That said, any major pound rally back above 1.3150-00 also requires more justification and I reckon we'll have to wait on either post-Brexit trade developments or more positive UK data to give buyers some conviction to push that issue.
As such, the pound could be finding itself settling into a new range now - around 1.2950 to 1.3200 - before we get the next key catalyst to drive price action into a break again.
