“¢ Renewed USD selling helps regain positive traction at the start of a new week.
“¢ The up-move lacked follow-through amid absent fundamental drivers/relevant data.
The GBP/USD pair built on its steady intraday climb and refreshed session tops in the last hour, recovering a major part of Friday’s corrective slide from six-week tops.
News that the Labour party is set to vote against PM May Chequers’ Brexit deal, coupled with a batch of upbeat US economic data prompted some fresh selling around the major on Friday. The selling pressure aggravated after a report indicated that US President Donald Trump wanted to proceed with tariffs on $200 billion worth of Chinese goods.
Despite growing fears about a full-blown US-China trade war, renewed US Dollar selling was seen as one of the key factors behind the pair’s positive momentum at the start of a new trading week. The British Pound got an additional boost after the UK Finance Minister Phillip Hammond reaffirmed prospects for a Brexit deal this autumn.
The uptick, exclusively driven by the USD price dynamics, lacked any strong follow-through momentum beyond the 1.3100 handle amid absent relevant UK economic data. Later during the early North-American session, the release of Empire State Manufacturing Index will now be looked upon to grab some short-term trading opportunities.
Technical levels to watch
Momentum beyond the 1.3100 mark is likely to confront resistance near the 1.3135 area, above which the pair seems all set to aim towards challenging the 100-day SMA barrier near the 1.3180 region. On the flip side, the 1.3060-50 region might continue to protect the immediate downside, which if broken might turn the pair vulnerable to slide further towards the key 1.30 psychological mark.
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