GBP/USD sticks to modest recovery gains above 1.2900, lacks bullish conviction

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GBP/USD sticks to modest recovery gains above 1.2900, lacks bullish conviction
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The GBP/USD pair attracts some buyers during the Asian session on Monday and for now, seems to have stalled its corrective slide from the 1.3045 area, or a one-year peak touched last week.

GBP/USD kicks off the new week on a positive note amid the emergence of some USD selling. September Fed rate cut bets, along with the US political development, weigh on the Greenback. Diminishing odds for an August rate cut by BoE support prospects for further gains for the GBP. Spot prices currently trade around the 1.2930 region, up over 0.10% for the day, though remain close to a one-week low set last Friday.

It is the fourth most traded unit for foreign exchange in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, aka ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders , and EUR/GBP . The Pound Sterling is issued by the Bank of England .

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