GBP/USD clings to modest gains, bulls await a move beyond 1.2200 mark

GBP/USD gains some traction on Monday and snapped three days of losing streak.
The uptick was led by a modest USD pullback, albeit lacked any strong follow-through.
It will be prudent to wait for a move beyond the 1.2200 mark before placing bullish bets.

Haresh Menghani FXStreet

The GBP/USD pair edged higher through the early North American session and was last seen trading near the top end of its daily trading range, just below the 1.2200 mark.

The pair managed to regain some positive traction on the first day of a new trading week and for now, seems to have snapped three consecutive days of losing streak. The uptick lacked any fresh fundamental catalyst and was sponsored by a modest US dollar pullback.

The prevalent risk-on mood undermined the greenback's safe-haven status and turned out to be one of the key factors that extended some support to the GBP/USD pair. However, concerns about worsening US-China relations might help limit any meaningful USD downfall.

China formally tabled national security laws for both Hong Kong and Macau. This comes after the US President Donald Trump threatened to take strong action if the law is passed and continued fueling worries about a major US-China tussle.

Meanwhile, expectations that the Bank of England might be eyeing the introduction of negative interest rates for the first time in history and persistent Brexit uncertainties might further contribute towards capping the GBP/USD pair.

Investors might also refrain from placing any aggressive bets amid thin liquidity on the back of public holidays in the UK and the US. Hence, it will be prudent to wait for some strong follow-through buying before positioning for any further near-term appreciating move.

Even from a technical perspective, the pair has been struggling to make it through the 200-hour SMA. The mentioned barrier coincides with the 1.2200 round-figure mark, which should now act as a key pivotal point for short-term traders.

Technical levels to watch

GBP/USD

Overview
Today last price	1.2184
Today Daily Change	0.0010
Today Daily Change %	0.08
Today daily open	1.2174

Trends
Daily SMA20	1.2334
Daily SMA50	1.2274
Daily SMA100	1.2623
Daily SMA200	1.2666

Levels
Previous Daily High	1.2234
Previous Daily Low	1.2162
Previous Weekly High	1.2296
Previous Weekly Low	1.2076
Previous Monthly High	1.2648
Previous Monthly Low	1.2165
Daily Fibonacci 38.2%	1.2189
Daily Fibonacci 61.8%	1.2206
Daily Pivot Point S1	1.2146
Daily Pivot Point S2	1.2118
Daily Pivot Point S3	1.2074
Daily Pivot Point R1	1.2218
Daily Pivot Point R2	1.2262
Daily Pivot Point R3	1.229

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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