- Regains some positive traction on the first day of a new trading week.
- The uptick lacked any strong follow-through on softer UK macro data.
- UK political uncertainty might further contribute towards capping gains.
The GBP/USD pair edged higher on the first day of a new trading week, albeit struggled to capitalize on the uptick further beyond the 1.2800 handle on softer UK macro data.
Given that the pair has already found acceptance below the 23.6% Fibonacci level of the 1.2198-1.3013 recent positive move, the bias seems tilted in favour of bearish traders.
However, oscillators on the daily chart have still managed to maintain their bullish bias and warrant some caution before positioning aggressively for any further depreciating move.
Meanwhile, any attempted recovery move beyond the mentioned hurdle seems more likely to confront some fresh supply and remain capped near the 1.2835-40 confluence resistance.
The mentioned region comprises of 100-hour SMA and near one-week-old descending trend-line, which should now act as a key pivotal point for the pair’s next leg of a directional move.
Sustained move beyond the mentioned barrier might lift the pair back towards the 1.2900 handle, though UK political uncertainty might keep a lid on any further positive move.
On the flip side, immediate support is now pegged near the 1.2770-65 region, below which the pair is likely to accelerate the slide further towards 38.2% Fibo. level near the 1.2715-10 area.
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