GBP/USD clings to gains near 1-week tops, just below mid-1.2400s
|- GBP/USD continued gaining positive traction for the fourth consecutive session on Monday.
- The prevalent USD selling bias turned out to be one of the key factors driving the pair higher.
- Bulls shrugged off worries over the economic fallout from the coronavirus, Brexit concerns.
The GBP/USD pair refreshed session tops, around mid-1.2400s in the last hour, albeit quickly retreated few pips thereafter.
The pair caught some fresh bids on the first day of a new trading week and built on last week's recovery move from the 1.2245 horizontal support. The pair climbed further beyond the 1.2400 mark and was being supported by the prevalent US dollar selling bias.
A positive mood across the global equity markets forced the USD to extended Friday's dismal US Durable Goods Orders-led retracement slide from 2-1/2 week tops and continued pushing the pair higher for the fourth straight session.
The positive momentum seemed rather unaffected by persistent worries over the economic fallout from the coronavirus pandemic and even shrugged off increasing prospects of an extended lockdown in the UK, resurfacing Brexit concerns.
It is worth reporting that the UK government maintained its stance on Brexit and has repeatedly refused to extend the transition period beyond the end of this year. This might eventually keep a lid on any further gains for the major.
The pair maintained its bid tone and held steady around the 1.2430 region after the UK Prime Minister Johnson said that the first phase of the virus outbreak might be peaking, albeit highlighted the risk of a second spike in infections.
In the absence of any major market-moving economic releases, either from the UK or the US, the broader market risk sentiment and fresh Brexit-related headlines will be looked upon to grab some short-term trading opportunities.
Technical levels to watch
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