GBP/USD reverses part of the recent weakness and revisits 1.2370

GBP/USD adds to Friday’s gains and retests the 1.2370/75 band.
The greenback trades without direction near 104.20/30.
Markets’ attention is expected to be on Friday’s US Payrolls.

Pablo Piovano FXStreet

Despite the broad-based range bound theme in the global markets, GBP/USD manages to gather further upside impulse and revisit the 1.2370 region on Monday.

GBP/USD looks at USD, risk trends

GBP/USD trades with gains for the second session in a row amidst the dollar’s vacillating price action and the generalized flattish mood in the global markets due to the US Memorial Day holiday and the UK’s Spring Bank Holiday.

Moving forward, investors’ attention should refocus on the release of US Nonfarm Payrolls for the month of May (June 2), which might have direct implication in the Fed’s interest rate decision on June 14, while further tightening is expected from the BoE also in June, particularly following sticky inflation figures during last month.

There were no data releases/events in the UK docket on Monday.

GBP/USD levels to consider

As of writing, the pair is gaining 0.01% at 1.2344 and the surpass of 1.2409 (55-day SMA) would open the door to 1.2668 (2023 high May 8) and then 1.2864 (200-week SMA). On the downside, the next support emerges at 1.2308 (monthly low May 25) seconded by 1.2274 (monthly low April 3) and finally 1.2010 (weekly low March 15).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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