GBP/USD fills weekly bearish gap, jumps to fresh session tops around mid-1.3100s
| • Brexit headlines continue to drive sentiment surrounding the British Pound.
• Renewed USD selling helps fill the weekly bearish gap to sub-1.3100 level.
The GBP/USD pair managed to fill the weekly bearish gap and is currently placed at fresh session tops, around mid-1.3100s.
With investors looking past the latest negative Brexit report over the weekend, a fresh wave of US Dollar selling pressure triggered the pair's initial leg of rebound from sub-1.3100 level.
The up-move extended through the mid-European session and followed the latest headlines, via Reuters, that this week's summit may not produce a Brexit breakthrough.
Meanwhile, bulls seemed to take cues from UK PM spokesman's comments, saying that the focus is still on getting a Brexit deal in the coming weeks.
With Brexit-related news turning out to be an exclusive driver of the sentiment surrounding the British Pound, market participants now look forward to the UK Brexit Secretary Dominic Raab's written statement to the British Parliament on Brexit.
Later during the early North-American session, the US monthly retail sales data might influence the USD price dynamics and might also produce/help traders grab some short-term opportunities.
Technical levels to watch
Immediate resistance is pegged near the 1.3170 area, above which the pair seems all set to aim towards reclaiming the 1.3200 handle before eventually darting towards the 1.3225-30 supply zone.
On the flip side, any meaningful fall back below the 1.3125 level might continue to find decent support near the 1.3100 handle, which if broken might turn the pair vulnerable to extend the downfall.
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