GBP/USD deflates from tops, back below 1.2900

The now better tone around the greenback is forcing GBP/USD to recede from the area above 1.2900 the figure, or daily highs.

GBP/USD gains capped around 1.2910

Cable advanced to the low-1.2900s earlier in the Asian session, although the bullish attempt run out of steam just past the key 1.2900 barrier along with a pick up in the demand for the greenback.

Markets remain apathetic and sidelined so far during the first half of the week, as cautiousness among traders continues to prevail in light of the upcoming Jackson Hole Symposium on Thursday and Friday.

UK’s calendar remains muted until Thursday’s release of the flash GDP figures for the April-June period. Still in Europe, the German ZEW survey could add some volatility to EUR/GBP while nothing is scheduled across the Atlantic.

GBP/USD levels to consider

As of writing the pair is losing 0.15% at 1.2883 and a break below 1.2829 (low Aug.18) would open the door to 1.2808 (low Jul.12) and finally 1.2747 (76.4% Fibo of 1.2587-1.3266). On the upside, the next hurdle aligns at 1.2920 (high Aug.18) followed by 1.2925 (10-day sma) and finally 1.3007 (38.2% Fibo of 1.2587-1.3266).