GBP/USD off lows, but struggles to extend recovery further beyond 1.30 handle
The GBP/USD pair stalled its corrective slide near 1.2965 level and was now seen making a fresh attempt to move back above the key 1.30 psychological mark.
Spot managed to catch fresh bids at lower level amid a fresh wave of greenback selling interest, dragging the key US Dollar Index below the 97.00 handle to fresh six month lows.
Despite of the pull-back, the pair maintained its bearish bias amid renewed worries over the Brexit negotiations. Spot came under some selling pressure at the start of the week following the UK PM Theresa May's comments to walk away from the negotiations if the country faces such €100 billion massive divorce bill as claimed by the EU officials.
Today's drop in major could also be attributed to the latest poll results showing that the Conservative Party’s lead narrowed, which some analysts worry might fuel concerns over a possible 'hard Brexit' scenario.
It, however, remains to be seen if the pair is able to build on the recovery move or once again runs through some fresh offers in wake of a rebound in the US treasury bond yields, always backed by growing prospects for an eventual Fed rate-hike action in June and which tends to underpin the greenback demand.
Later during the day, speeches from various FOMC members would now be looked upon for some fresh impetus ahead of this week's important release of the Fed monetary policy meeting minutes on Wednesday and former FBI director James Comey's testimony.
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Technical levels to watch
Bulls would be disheartened if the pair breaks through 1.2970-65 immediate support, below which the corrective slide could get extended towards 1.2900-1.2890 zone en-route 1.2840-35 horizontal support. On the flip side, momentum above 1.3040-50 immediate hurdle now seems to pave way for continuation of the pair's near-term upward trajectory towards the 1.3100 handle ahead of its next major hurdle near 1.3125-30 area.