GBP/USD sits at session tops, bulls await a sustained move beyond 1.2500 handle

The new UK PM Johnson reiterates to leave the EU on October 31.
Ready to leave without a deal if the EU is not ready to make changes.
The prevalent USD bullish sentiment also capped any further gains.

Haresh Menghani FXStreet

The GBP/USD pair spiked to fresh session tops in the last hour, with bulls still awaiting a sustained move beyond the key 1.2500 psychological mark.

The pair quickly reversed an early European session dip to an intraday low level of 1.2465 and turned higher for the second straight session, albeit the uptick lacked any obvious fundamental catalyst and was solely led by some short-covering move.

Meanwhile, the new British PM Boris Johnson's first statement in the House of Commons, reiterating his commitment to leave the EU on October 31 preferably with a deal, did little to impress the bulls or provide any meaningful impetus.

Johnson further added that backstop must be abolished in order to reach a deal and we will have to leave without a deal if the EU is not ready to make changes to the withdrawal agreement, which seemed to be the only factor capping strong gains.

On the other hand, the US Dollar stood tall near multi-week tops amid tempered expectations of a 50 bps rate cut by the Fed at its upcoming meeting on July 30-31 and further collaborated towards keeping a lid on any runaway rally, at least for the time being.

It would now be interesting to see if the pair is able to capitalize on the intraday positive momentum or once again meets with some fresh supply at higher levels as market participants now look forward to the release of US durable goods orders data for a fresh impetus.

Technical levels to watch

GBP/USD

Overview
Today last price	1.2499
Today Daily Change	0.0016
Today Daily Change %	0.13
Today daily open	1.2483

Trends
Daily SMA20	1.2533
Daily SMA50	1.262
Daily SMA100	1.2847
Daily SMA200	1.2864

Levels
Previous Daily High	1.2522
Previous Daily Low	1.2427
Previous Weekly High	1.2579
Previous Weekly Low	1.2382
Previous Monthly High	1.2784
Previous Monthly Low	1.2506
Daily Fibonacci 38.2%	1.2486
Daily Fibonacci 61.8%	1.2463
Daily Pivot Point S1	1.2432
Daily Pivot Point S2	1.2382
Daily Pivot Point S3	1.2336
Daily Pivot Point R1	1.2528
Daily Pivot Point R2	1.2573
Daily Pivot Point R3	1.2624

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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