GBP/USD finds resistance near 1.31, fluctuates in tight range

• Uncertainty around Article 50 extension keeps GBP gains limited.
• US 10-year T-bond yield gains around 1% on Monday.
• US Dollar Index turns flat on the day near mid-96s.

The GBP/USD pair struggled to find enough strength to rise above 1.31 on Monday and is now having a difficult time making a decisive move in either direction. At the moment, the pair is up 0.15% on a daily basis at 1.3070.

Earlier today, the British pound gained some traction despite the fact that British Prime Minister Theresa May  announced that the meaningful vote would take place on March 12. Hope os Article 50 getting extended provided the main boost to the GBP. Speaking to reporters following his meeting with PM May, European Council President Donald Tusk said that extending Brexit would be a rational solution. On the other hand, PM May refrained from making clear comments on that matter and said that she will be delivering a statement to the House of Commons on Tuesday.

On the other hand, the US Dollar Index, which slumped toward the 96.30 area earlier in the day, retraced its daily drop in the NA session supported by a 1% increase seen in the 10-year T-bond yield. As of writing, the index was virtually unchanged on the day at 96.50.

Earlier today, the data published by the Federal Reserve Bank of Dallas showed that the manufacturing sector in the Texas region gathered momentum in February and the Chicago Fed National Activity Index dropped to -0.43 in January from 0.05 in December. Nevertheless, neither of these data releases had a meaningful impact on the greenback’s market valuation.

Technical levels to consider