GBP/USD climbs to fresh session tops, near mid-1.3100s

Haresh Menghani FXStreet

• Investors looked past Friday’s negative Brexit headlines.
• Fresh USD selling helped regain traction on Monday.

The GBP/USD pair built on its intraday strong positive momentum and refreshed session tops, around the 1.3145 region in the last hour.

The pair stalled Friday's steep decline near mid-1.3000s, triggered by negative Brexit comments by the UK PM Theresa May, and caught some strong bids at the start of a new trading week.

A fresh wave of US Dollar selling bias, despite the ongoing upsurge in the US Treasury bond yields, helped the pair to regain positive traction and break through its Asian session consolidative range.

The uptick got an additional boost on the back of some optimistic Brexit comments by Germany's European affairs minister Michael Roth, saying that Brexit deal was still possible by November.

Meanwhile, the price action further seems to indicate that the latest leg of up-move over the past few hours or so was further fueled by some technical buying, following a sustained move back above the 1.3100 handle.

It would now be interesting to see if the pair is able to build on the momentum further beyond the 100-day SMA amid absent relevant market moving economic releases and ahead of this week's key event risk - the highly anticipated FOMC decision on Wednesday.

Technical levels to watch

Immediate resistance is pegged near the 1.3150-55 region (100-DMA), above which the pair is likely to aim towards surpassing the 1.3200 handle and test 1.3225-30 supply zone. On the flip side, the 1.3110-1.3100 region now seems to protect the immediate downside, which if broken might turn the pair vulnerable to retest the 1.3050 support area before eventually dropping to the key 1.30 psychological mark.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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