GBP/USD sticks to modest intraday gains above mid-1.2600s amid softer USD

GBP/USD attracts buyers for the second straight day amid subdued US Dollar price action.
BoE Chief Economist Huw Pill's hawkish remarks underpin the GBP and remain supportive.
Bets that the Fed will keep rates higher for longer to limit the USD losses and cap the pair.

Haresh Menghani FXStreet

The GBP/USD pair builds on Friday's goodish rebound from the 1.2600 round figure, or a one-and-half-week trough and gains some positive traction for the second successive day on Monday. The momentum lifts spot prices to a multi-day peak, around the 1.2660-1.2665 area during the Asian session and is sponsored by a combination of factors.

The British Pound (GBP) draws support from the Bank of England (BoE) Chief Economist Huw Pill's hawkish remarks on Friday, saying that the first cut in the key interest rate is still some way off. The US Dollar (USD), on the other hand, remains depressed in the wake of Friday's disappointing US macro data and less hawkish remarks by Federal Reserve (Fed) officials. Apart from this, the recent risk-on rally across the global equity markets further undermines the safe-haven Greenback, which, in turn, lends some support to the GBP/USD pair.

The downside for the USD, however, seems limited amid growing acceptance that the Fed will keep interest rates higher for longer. Traders might also refrain from placing aggressive directional bets ahead of this week's important US economic releases, including the closely-watched Nonfarm Payrolls (NFP) on Friday and Fed Chair Jerome Powell's semi-annual congressional testimony on Wednesday and Thursday. This, in turn, warrants some caution before positioning for any further near-term appreciating move for the GBP/USD pair.

In the meantime, there isn't any relevant market-moving data due for release on Monday, either from the UK or the US, leaving spot prices at the mercy of the USD price dynamics. That said, the US bond yields, along with the broader risk sentiment, might influence the USD price dynamics and produce short-term trading opportunities around the GBP/USD pair.

GBP/USD

Overview
Today last price	1.2663
Today Daily Change	0.0007
Today Daily Change %	0.06
Today daily open	1.2656

Trends
Daily SMA20	1.2624
Daily SMA50	1.2675
Daily SMA100	1.2554
Daily SMA200	1.2577

Levels
Previous Daily High	1.2664
Previous Daily Low	1.26
Previous Weekly High	1.27
Previous Weekly Low	1.26
Previous Monthly High	1.2773
Previous Monthly Low	1.2518
Daily Fibonacci 38.2%	1.264
Daily Fibonacci 61.8%	1.2624
Daily Pivot Point S1	1.2616
Daily Pivot Point S2	1.2576
Daily Pivot Point S3	1.2552
Daily Pivot Point R1	1.268
Daily Pivot Point R2	1.2704
Daily Pivot Point R3	1.2744

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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