The GBP/USD pair gapped almost 200-pips lower at the start of a brand new week, and now extends its downside consolidation below 1.2050 levels as we head towards the European open.
UK PM May’s speech on Brexit eyed
The cable wavers in a tight range over the last hours, making minor-recovery attempts from a sharp bearish opening gap, after the Asian traders reacted negatively on weekend’s narrative from the UK press, citing that the UK PM May is expected to reveal more about her Brexit plans and could most likely call for a Hard-Brexit in her speech scheduled tomorrow.
Net short GBP positions highest in 8 weeks – ANZ
Moreover, the latest CFTC report showed that the speculators stayed bearish on the pound, sending the net bearish positions on the GBP to the highest levels in eight weeks. Also, this week’s UK Supreme Court ruling on Article 50 triggers will be also eagerly awaited for fresh cues on GBP/USD.
On the data-front, we have no significant updates from the UK docket, and hence, focus shifts towards Tuesday’s UK CPI report. On the US-side, there are no macro events on the cards as the US markets are closed in observance of a National Holiday.
GBP/USD Levels to consider
In terms of technical levels, upside barriers are lined up at 1.2061 (daily R1), 1.2100 (zero figure) and 1.2125 (5-DMA). While supports are aligned at 1.1995 (multi-week low) and 1.1850 (post-Flash crash low) and below that at 1.1800 (key psychological support).
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