GBP/USD bulls struggle to make it through a confluence resistance

   “¢   Easing USD bearish pressure now seemed to cap any additional gains.
   “¢   A convincing move beyond mid-1.3100s needed for further up-move.

The GBP/USD pair quickly reversed an early European session dip to 1.3113, albeit continued with its struggle to make it immediate barrier near mid-1.3100s.  

Despite a bearish development, wherein the EU leaders rejected the UK PM Theresa May’s current Brexit plan, the pair continued gaining positive traction at the start of a new trading week and was supported by a follow-through US Dollar selling bias.

The US President Donald Trump’s comments on Friday, showing displeasure over the Fed’s monetary tightening and the recent dollar strength, kept the USD bulls on the defensive and helped the pair to build on last week’s goodish rebound from YTD lows.

The bullish momentum, however, lacked any strong conviction, with easing USD bearish pressure capping the pair near a confluence resistance comprising of 200-hour SMA and 50% Fibonacci retracement level of the 1.3363-1.2957 recent downfall.  

Hence, it would be prudent to wait for a follow-through buying interest before committing to any further appreciating move. Today’s US economic docket, featuring the release of existing home sales data might provide some short-term impetus ahead of the BoE Deputy Governor Ben Broadbent’s scheduled speech later during the New-York trading session.  

Technical levels to watch

A convincing breakthrough the 1.3150 immediate resistance is likely to accelerate the up-move further towards the 1.3200 handle en-route the 1.3230-40 supply zone. On the flip side, the 1.3115-10 region might continue to protect the immediate downside, which if broken now seems to drag the pair back towards 1.3070 intermediate support ahead of the key 1.30 psychological mark.