GBP/USD weaker, looking to regain 1.3000

The Sterling has started the week on the defensive, dragging GBP/USD to as low as the 1.2980 region just to regain some ground afterwards.

GBP/USD attention to EU-Brexit

Spot opened the Asian session with an offered bias after advancing well north of the psychological 1.3000 handle during the second half of last week, largely on the back of USD-weakness.

However, Brexit concerns have re-emerged over the weekend, this time gyrating around the ‘divorce bill’ that, according to EU officials, amounts €100 billion. The UK threatened to quit talks if no agreement is reached with its EU peers, while PM Theresa May suggested that ‘money paid in the past’ ought to be taken into account in the final figures. It is worth recalling that Brexit negotiations are due to start on June 19.

In addition, some moderate recovery in the greenback has collaborated with Cable’s downside at the beginning of the week.

Nothing expected data wise in the UK today should leave the attention on the USD-dynamics and the Eurogroup meeting, with the above mentioned EU-UK talks taking centre stage.

GBP/USD levels to consider

As of writing the pair is losing 0.29% at 1.2997 facing the next support at 1.2975 (low May 22) followed by 1.2924 (20-day sma ) and finally 1.2889 (low May 18). On the flip side, a breakout of 1.3051 (2017 high May 18) would expose 1.3125 (high Sep.22 2016) and then 1.3351 (high Sep.12 2016).