GBP/USD bulls still await a sustained move beyond 1.2500 mark

• GBP/USD gains traction for the second straight session amid sustained USD selling.
• The upbeat market mood continued undermining demand for the safe-haven USD.
• Brexit uncertainties, concerns about rising COVID-19 cases cap gains for the major.

The GBP/USD pair maintained its bid tone through the early part of the European trading action, with bulls still awaiting a sustained move beyond the key 1.2500 psychological mark.

The pair built on Friday’s intraday positive move of around 50 pips and gained some follow-through traction on the first day of a new trading week. The uptick was exclusively sponsored by sustained selling around the US dollar, which remained depressed and failed to gain any respite from a goodish pickup in the US Treasury bond yields.

The incoming positive economic data offered further evidence that the worse of the coronavirus pandemic was probably over and revived hopes of a sharp V-shaped global economic recovery. This, in turn, remained supportive of the upbeat market mood and continued denting the greenback’s relative safe-haven status against its British counterpart.

However, growing market concerns that a continuous rise in the number of new coronavirus cases across the world could trigger renewed lockdown measures and eventually delay economic recovery. The market worries held investors from taking excessive risk and turned out to be one of the key factors capping any strong gains for the GBP/USD pair.

This comes amid persistent Brexit uncertainties, making it prudent to wait for some strong follow-through buying before placing any aggressive bullish bets. Hence, Monday’s key focus will be on the key Brexit talks in London. The incoming Brexit-related headlines might provide some impetus, rather infuse some volatility around the GBP pairs.

Apart from this, traders will further take cues from the release of the US ISM Non-Manufacturing PMI. The data might influence the USD price dynamics and contribute towards producing some meaningful trading opportunities later during the early North American session.

Technical levels to watch