GBP/USD recovery faltered near 1.2970, eyes on PM May

• Cable regains some composure in the 1.2960/70 band.
• Attention on PM May’s meeting with DUP leader in N.Ireland.
• BoE meeting, Inflation Report coming up on Thursday.

The British Pound has regained some shine on Wednesday and is now lifting GBP/USD to the 1.2960/70 band.

GBP/USD supported near 1.2920

After bottoming out in new 2-week lows near 1.2920 in early trade, Cable has managed to regain some buying interest and move to the upper end of the daily range.

The strange absence of relevant headlines in the Brexit negotiations as of late appears to have weighed on the sentiment around the Sterling in past sessions, sponsoring the moderate sell-off from last week’s YTD tops beyond 1.3200 the figure.

However, GBP has managed to return to the fore today amidst speculations surrounding today’s PM May’s visit to Northern Ireland to meet with DUP leader A.Foster. It is worth recalling that May has recently reiterated she will not remove the Irish backstop from her deal, although she could suggest some changes to it.

Moving forward, the BoE will hold its monetary policy meeting tomorrow along with the publication of the Inflation Report.

GBP/USD levels to consider

As of writing, the pair is gaining 0.13% at 1.2962 and a break above 1.2974 (21-day SMA) will open the door to 1.3000 (high Jan.17) and then 1.3035 (200-day SMA). On the downside, the next support emerges at 1.2924 (high Feb.6) seconded by 1.2900 (100-day SMA) and finally 1.2803 (55-day SMA).