The pound is heading towards $1.30

LONDON — The pound was approaching 1.30 against the dollar on Thursday, holding modest gains in early morning trading as investors digested the UK’s first quarter GDP report, which slightly undershot expectations.

Sterling passed above the psychologically significant $1.30 level last week, but has struggled against the greenback since then, largely thanks to dollar strength.

The pound is up 0.12% from the open, and as of 9.45 a.m. BST (3.20 a.m. ET) is trading at $1.2986:

Investing.com

FXTM research analyst Lukman Otunuga says in a note:

“Sterling was passive this week with prices hovering around 1.3000 as investors redirected their focus elsewhere. A vulnerable dollar did little to elevate prices higher and, as such, continues to highlight how the upside remains limited by Brexit anxieties.

“With uncertainty over Brexit still gripping sterling, downside risks remain present. From a technical standpoint, the GBP/USD could be displaying early signs of exhaustion with weakness below 1.2900 opening a path to 1.2775.”