GBP/USD hits fresh session tops, around mid-1.3200s

   “¢   US-China trade war fears keep the USD bulls on the defensive and helped regain positive traction.
   “¢   Any fresh Brexit headlines might continue to influence sentiment surrounding the British Pound.
   “¢   All eyes remain glued to the latest US monthly jobs report and any fresh trade-related developments.

The GBP/USD pair continued with its steady climb from the 1.3200 neighborhood and refreshed session tops in the last hour.

The pair stalled overnight retracement from 1-1/2 week tops, led by a Bloomberg report claimed that Germany sees the UK PM Theresa May’s customs plan as unworkable, and seems to have found decent support near the 1.3200 handle.  

After yesterday’s modest rebound, supported by upbeat US ISM non-manufacturing PMI and the latest FOMC meeting minutes, escalating US-China trade conflict kept the US Dollar bulls on the defensive and assisted the pair to catch some fresh bids on the last trading day of the week.  

The new US tariffs on $34 billion worth of Chinese imports took effect on Friday, with the latter retaliating by applying tariffs to the same value of US goods at the same rate and risking a potential full-blown trade war between the world’s two largest economies.

It, however, remains to be seen if the pair is able to extend the ongoing positive momentum or once again meet with some fresh supply as market participants now look forward to the Friday’s crunch Brexit meeting at Chequers.  

Apart from any fresh Brexit headlines, the release of US monthly jobs report (NFP) would influence the USD price dynamics and also help traders grab some meaningful trading opportunities later during the early North-American session.

Technical levels to watch

The 1.3275 level (overnight swing high), closely followed by the 1.3300 handle could act as immediate hurdles, above which the pair is likely to aim towards testing its next resistance near the 1.3330-35 region.

On the flip side, a sustained weakness below the 1.3200 handle is likely to accelerate the fall towards 1.3140 horizontal support before the pair eventually drops below the 1.3100 mark and aim towards testing YTD lows near mid-1.3000s.