GBP/USD extends correction to the 1.3100 zone

• US Dollar firm on Monday supported by US yields, recovers after Friday’s slide.
• GBP/USD retreats to the 1.3100 area as the bullish momentum eases.

The GBP/USD pair is falling modestly on Monday amid a recovery of the US dollar across the board. Earlier today cable reached at 1.3157, the highest level in 6days and then pulled back. It bottomed at 1.3099. As of writing was trading at 1.3105/10, down 25 pips the day.

On Friday, GBP/USD rose more than a hundred pips and today is experiencing a modest correction amid some potential profit taking and a recovery of the greenback. Still, the tone favors the upside in GBP/USD

Price action remains limited on Monday. Among movers, are US yields. The 10-year yield opened below 2.90% and just reach 2.948%, the highest since June 21. Higher US yields support the greenback. Regarding data, in the US the Chicago Fed index came in above expectations while Existing Home Sales dropped 0.6% in June against an estimated increase of 0.5%.

Technical levels

To the downside, below 1.3100, support levels might be located at 1.3080 and then 1.3045. To the upside, immediate residence is seen at 1.3115 followed by the 1.3150 area. A consolidation above the mentioned zone could clear the way to more gains with a target at 1.3180.