GBP/USD under pressure below 1.3100

The Sterling remains entrenched in the negative territory today, with GBP/USD gyrating around 1.3100 the figures as of writing.

GBP/USD in 5-week lows

The pair is posting losses for the third session in a row today, in response to a firmer fashion around the greenback after Chair Yellen’s speech hinted at the likeliness of a Fed’s rate hike in the next months.

In addition, the inactivity in the UK markets due to the bank holiday keeps trading conditions in marginal levels and volatility almost absent.

GBP remains under pressure nonetheless, as according to the latest CFTC report, net speculative shorts remained in record levels in the week ended on August 23 (nearly 95K contracts).

GBP/USD levels to consider

As of writing the pair is losing 0.36% at 1.3093 facing the next support at 1.3087 (low Aug.29) followed by 1.2863 (low Aug.15) and finally 1.2849 (low Jul.11). On the other hand, a breakout of 1.3214 (resistance trend line off July’s high) would open the door to 1.3321 (23.6% of the post-Brexit down move) and then 1.3373 (high Aug.3).