GBP/USD once against fails near 1.2770 support turned resistance

The GBP/USD pair once again stalled its recovery move near 1.2770 level and retreated around 40-pips from session tops. 

As market tries to digest Friday's disastrous UK election result, uncertainty on how the Brexit negotiations are going to go failed to assist the pair to build on Friday's recovery move from 7-week lows near 1.2635 region. 

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Adding to this, increasing odds for an eventual Fed rate-hike action this week supported the positive tone around the US treasury bond yields did little to lift the pair back above 1.2770-80 strong horizontal support break-point now turned resistance. 

Even a mildly softer tone around the key US Dollar Index did little to stall the pair's retracement back to 1.2725-30 band, with renewed Brexit worries acting as a key determinant of the pair's choppy trading action at the start of a new week.

Moving ahead, a slew of important economic data/events, including the FOMC decision and BoE announcement, would remain in focus and help investors determine the pair's near-term trajectory.

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Technical levels to watch

On a sustained weakness below the 1.2700 handle, the pair seems to aim back towards retesting Friday's swing lows near 1.2635 area ahead of 100-day SMA support near 1.2620 region. 

Meanwhile on the upside, any recovery move might continue to confront fresh supply near 1.2770-80 zone, which if cleared might trigger a short-covering bounce beyond the 1.2800 handle towards its next resistance near 1.2870-80 region.