GBP/USD clings to recovery gains near session tops, around mid-1.2800s

GBP/USD staged a goodish rebound on Monday and was supported by a combination of factors.
Easing fears of a no-deal Brexit prompted some short-covering move around the British pound.
The prevalent USD selling bias remained support ahead of a crucial vote in the UK parliament.

Haresh Menghani FXStreet

The GBP/USD pair built on its steady intraday positive move and refreshed daily tops, around mid-1.2800s during the early European session.

The British pound witnessed some short-covering move on the first day of a new trading week ahead of a crucial vote on the UK government’s so-called Internal Market Bill. The legislation drew a lot of criticism and fueled market fears that the UK will crash out of the European Union at the end of the transition period.

However, reports indicated that Alliance parties could table an amendment aimed to block the bill from proceeding. Adding to this, Ex-Prime Ministers Tony Blair, along with Sir John Major urged MPs to reject the government's attempt to override parts of Withdrawal Agreement and helped eased concerns about a no-deal Brexit.

The GBP/USD pair staged a goodish bounce from the vicinity of the very important 200-day SMA and for now, seems to have stalled a two-week-old bearish trajectory. The recovery was further supported by the prevalent selling bias around the US dollar, which remained depressed amid doubts over the next round of the US fiscal stimulus measures.

Developments surrounding the Brexit saga will continue to play a key role in influencing the sentiment surrounding the sterling amid absent relevant market-moving economic releases, either from the UK or the US. Hence, it remains to be seen if the GBP/USD pair is able to capitalize on the momentum or runs into some fresh supply at higher levels.

Technical levels to watch

GBP/USD

Overview
Today last price	1.285
Today Daily Change	0.0054
Today Daily Change %	0.42
Today daily open	1.2796

Trends
Daily SMA20	1.3157
Daily SMA50	1.2965
Daily SMA100	1.2694
Daily SMA200	1.2737

Levels
Previous Daily High	1.2866
Previous Daily Low	1.2763
Previous Weekly High	1.3279
Previous Weekly Low	1.2763
Previous Monthly High	1.3396
Previous Monthly Low	1.2982
Daily Fibonacci 38.2%	1.2802
Daily Fibonacci 61.8%	1.2826
Daily Pivot Point S1	1.275
Daily Pivot Point S2	1.2705
Daily Pivot Point S3	1.2647
Daily Pivot Point R1	1.2853
Daily Pivot Point R2	1.2911
Daily Pivot Point R3	1.2957

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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