Home GBP/USD spikes to fresh session tops, but remains capped at 1.36 mark
FXStreet News

GBP/USD spikes to fresh session tops, but remains capped at 1.36 mark

   “¢   The USD corrective slide remains unabated amid retracing US bond yields.  
   “¢   Bulls, however, seemed non-committed ahead of this week’s UK macro data.

The GBP/USD pair quickly reversed an early European session dip to 1.3540 area and rallied over 50-pips, albeit remained capped below the 1.3600 handle.

The ongoing US Dollar corrective slide helped the pair to catch some bids at the start of a new trading week and recover further from last week’s 4-month lows. The up-move, however, lacked any strong follow-through and the pair held within its recent familiar trading range, around the very important 200-day SMA.

The latest dovish BoE tilt was seen as one of the key factors keeping a lid on any meaningful up-move for the British Pound. Moreover, investors also seemed reluctant to place aggressive bets ahead of this week’s UK employment details, especially the all-important wage growth data, and BoE’s inflation report hearings, both scheduled on Tuesday and which might provide some fresh directional impetus.  

Even from a technical perspective, the formation of a ‘Doji’ candle on the weekly charts suggests indecision between bulls and bears. Hence, it would be prudent to wait for a decisive break in either direction before positioning for the pair’s near-term trajectory.  

Technical levels to watch

The 1.3600-10 region might continue to act as an immediate hurdle, above which the pair is likely to spike back towards 1.3650 intermediate resistance en-route the 1.3700 handle. On the flip side, the 1.3545 region (200-DMA) now seems to protect the immediate downside and is followed by the key 1.3500 psychological mark and the very important 1.3465-60 support area.
 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.