GBP/USD clings to gains beyond 1.2400 handle

The GBP/USD pair maintained its bid tone for the fourth consecutive session and surpassed the 1.2400 handle to hit fresh monthly highs. 

Currently trading around 1.2415-20 region, few pips off session peak touched in the past hour, spot extended its strong recovery move from last week's eight week lows amid persistent bearish sentiment surrounding the US Dollar, in wake of perceived less hawkish Fed outlook. 

This coupled with a hawkish BoE twist further collaborated to the pair up-surge back above 100-day SMA, to nearly 3-week highs. Meanwhile, Queen Elizabeth's formal approval to the Brexit legislation, giving the UK Prime Minister Theresa May the power to begin EU exit talks, helped eased Brexit worries and has been supportive of the strong bid tone surrounding the major. 

In absence of any major market moving economic releases, traders on Monday would take cues from speeches from Chicago Fed President Charles Evans and BOE's Chief Economist, and MPC voting member, Andy Haldane, due later during the NY trading session.

Technical levels to watch

The pair has now cleared an important hurdle near 1.2410-15 region and hence, a follow through buying interest has the potential to continue boosting the pair further towards 1.2475-80 hurdle, with some intermediate resistance near 1.2445-50 zone. 

On the downside, retracement back below the 1.2400 handle, leading to a subsequent drop below 1.2370-60 area, accelerate the slide towards 1.2340 level before the pair eventually breaks through 1.2300 round figure mark and head towards testing mid-1.2200s support area.