GBP/USD clings to strong gains above 50-DMA

The GBP/USD pair maintained its strong bid tone above 50-day SMA, albeit has retreated around 25-pips from session peak and is currently trading around mid-1.2400s.

Receding worries of a 'hard Brexit', following last week's speech from the UK Prime Minister Theresa May, coupled with persistent US Dollar selling pressure, in wake of disappointment from the US President Donald Trump's inaugural speech, provide the required momentum to clear 50-day SMA strong barrier and jump to the highest level since Dec. 19.

Market participants, however, seems to have turned cautious and now keenly await for the UK Supreme Court ruling on whether Parliament approval is necessary to trigger Article 50, expected on Tuesday. 

In the meantime, broader market sentiment surrounding the greenback would remain the sole driver for the movement on Monday. 

Technical levels to watch

Momentum above session peak resistance near 1.2470-75 region now seems to lift the pair beyond 1.2500 psychological mark, towards its next major hurdle near 1.2575-80 area. On the downside, 50-day SMA near 1.2410-1.2400 region now becomes immediate support, which if broken is likely to accelerate the downslide towards 1.2340-35 horizontal support, en-route 1.2300-1.2290 zone.