GBP/USD deflates from 1.3060, despite OPEC deal-led risk-on

A renewed uptick seen in the GBP/USD pair lost pace near 1.3060 region, sending the rate lower back towards 10-DMA support located at 1.3112.

GBP/USD tracks Oil lower

Currently, GBP/USD trades modestly flat at 1.3024, trying hard to retain the bids. The cable erased almost entire gains, largely tracking the oil price-action, especially in light of the OPEC deal news. While a broadly higher greenback on the back of upbeat US durable goods data and hawkish Fed speaks, also added to renewed weakness in the GBP/USD pair.

Earlier on the day, the major spiked to 1.3058 highs after a renewed risk-on wave hit the Asian markets, as traders reacted positively to the reports of an OPEC production cut deal reached, and hence, resorted to risk currencies such as the GBP.

Next of note for the major remains the second-liner data from the UK docket ahead of the US GDP figures and central banks’ speeches due later in the NA session.

GBP/USD Levels to consider            

The pair has an immediate resistance at 1.3058 (daily high), above which 1.3090 (Sep 23 high) and 1.3125 (Sep 22 high) would be tested. On the flip side, support is seen at 1.3000 (round figure) below that at 1.2943 (Sept 21 low)  and at 1.2943 (Sept 21 low).