GBP/USD: Will the buyers retain control above 1.2900?

Fresh bids emerged once again near 1.2880 levels, prompting the GBP/USD pair to reclaim 1.29 handle, as the bulls find support from a broadly weaker US dollar.

The greenback continues to suffer losses against its six major peers, in response to Yellen’s failure to provide insights on the monetary policy outlook at the Jackson Hole event last Friday.

However, the bulls find it difficult to extend the upside above 1.2910 levels, as widespread risk-aversion amid negative European stocks and oil prices weigh down on the higher-yield currency GBP.

Further, the GBP bulls remain cautious and refrain from extending their control, with looming Brexit concerns, as the UK Government meets the EU officials later this week for a third round of Brexit negotiations.

Also, holiday-thinned markets offer little impetus to Cable, leaving the rate struggling with 1.29 handle. Focus now shifts towards the US datasets for some fresh trading impetus.

 GBP/USD levels to consider            

Slobodan Drvenica At Windsor Brokers Ltd writes: “Technical studies are mixed on daily chart but bullish signal was generated on completion of reversal pattern on Friday. Sustained break above daily cloud/55SMA would open psychological 1.3000 barrier (also 30SMA for test). Conversely, return and close below daily cloud would be negative signal and shift near-term focus lower. Res: 1.2912; 1.2924; 1.2962; 1.2992 Sup: 1.2873; 1.2857; 1.2811; 1.2793.”