The parity saw the Asian recovery mode pause and aggressive sales after the European opening, with an immediate bottom below 1.28 psychological level. However, the bulge quickly gained momentum and pulled the GBP / USD above the level, now moving towards the upside-down bar near 1.2840 levels.
The rise of the parity will depend on what Fed President Yellen will say about the monetary policy outlook at the Jackson Hole Symposium. Any tightening signal on interest rate hikes in December could lead to the gigantic USD rally, and the GBP / USD could tighten to the 1.2600 / 1.2580 level.
The parity may also be affected by AMB President Draghi’s speech. Data is expected to be released from the US on July durable goods orders.
The GBP / USD pair is currently trading at 1.2821 with a gain of 0.16%.
Significant technical levels for GBP / USD
1.2793, 1.2773, 1.2749 and 1.2715 levels of support, resistance to 1.2836, 1.2857, 1.2871 and 1.2912 for the pair.