GBP/USD rebounds and prints fresh daily highs above 1.3100

• Pound gains momentum and prints fresh highs versus USD, EUR.
• Wall Street mixed on Monday, as DXY erases gains.

The GBP/USD pair bounced from near 1.3000 to 1.3103, hitting a fresh daily high as the US dollar moved lower across the board. The greenback lost strength, favouring the rebound in cable.

A stronger pound is also helping the upside in GB/SD. The pair trades at the moment at 1.3080, up 30 pips from Friday’s close. At the same time, EUR/GBP dropped again below 0.9000, to test last week lows near 0.8980.

In Wall Street, the Dow Jones gains 0.48%, and the S&P 500 drops 0.35% and the Nasdaq losses 1.35%. US yields remain steady. The DXY is flat, after finding resistance again near 93.70. Rising tensions between the US and China damaged market sentiment, but not considerably.

Technical levels

On the upside, GBP/USD is facing resistance around 1.3100; a break higher would open the door to 1.3120/25 in the very short-term. The critical level is 1.3150, a daily close above would suggest more gains ahead. On the flip side, support levels might be seen at 1.3035, 1.3005 (Aug 7 low) and 1.2975/80 (last week low).