GBP/USD looking to retake 1.30 handle

GBP/USD pair is looking to re-take 1.30 handle following Tuesday’s sharp losses, however, the gains are being capped by the weakness in the GBP/JPY pair.

Eyes BOJ rate decision, UK data and FOMC

The immediate focus is on the BOJ policy review and the resulting action in the GBP/JPY cross. Post BOJ, the UK Public Sector Net Borrowing (PSNB) number could offer clues to the pair.

Later in the FOMC rate decision would hog the limelight. At the time of writing, the pair was trading around 1.2995 after having clocked a daily high of 1.3004.

GBP/USD Technical Levels

Acceptance above 1.3002 (76.4% of 1.2865-1.3445) would open doors for hourly 50-MA level of 1.3021. A violation there could yield 1.31 (hourly 100-MA). On the other hand, a breakdown of 1.2987 (hourly 10-MA) would expose support at 1.2947 (previous day’s low) and 1.29 handle.