GBP/USD recovery gains momentum; reclaims 1.2400 handle

The GBP/USD pair's recovery from session low has gained further traction in the past couple of hours, lifting the pair back above 1.2400 handle. 

Spot caught fresh bids after UK PM Theresa May, speaking at the CBI, assured that the government would try for arrangements, which would be the best for UK businesses in the longer-term. Meanwhile, a broad based profit-taking slide in the greenback further contributed to the pair's recovery momentum from session lows. 

Further upside, however, might be restricted as the overall US Dollar Index remains within a well-established post-US presidential election up-trend on increasing prospects of an eventual Fed rate-hike action at its meeting in December. 

Hence, investors this week will remain focused on FOMC meeting minutes along with the UK Treasury’s Autumn Forecast Statement, both scheduled on Wednesday.

Technical levels to watch

From current levels, the ongoing recovery momentum could get extended towards 1.2435 (Friday's high) above which a fresh bout of short-covering could lift the pair beyond 1.2450 resistance and aim towards reclaiming 1.2500 psychological mark. On the downside, sustained weakness back below 1.2350 immediate support might now drag the pair through session low support near 1.2315-10 region, towards its next major support near 1.2280-75 region.

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