GBP/USD Forecast: could extend the recovery beyond 1.30 handle

The GBP/USD pair built on last week's recovery move from near two-month lows and is now placed at 50-day SMA hurdle, just below mid-1.2900s. Part of the pair's up-move on Monday was led by some renewed US Dollar selling pressure. No signals over the Fed’s monetary policy tightening path continued weighing on the greenback and helped the pair to nearly two-week highs. Meanwhile, the British Pound got an additional boost from the news headlines coming out of a new round of Brexit negotiations that the UK Labor party prefers a soft Brexit, which allows the country to retail access to the single market and customs union. 

The pair has managed to hold in positive territory for the fourth consecutive session and seems to retain a near-term bullish bias, which would be further reinforced on a decisive break through 50-day SMA hurdle. On a sustained move beyond the mentioned barrier, the pair is likely to accelerate the up-move towards reclaiming the key 1.30 psychological mark before eventually darting towards its next strong resistance near the 1.3030-35 region.

Conversely, rejection from current resistance area, and a subsequent weakness back below the 1.2900 handle would negate the bullish tilt and turn the pair vulnerable to head back towards testing an ascending trend-line support near the 1.2800-1.2790 region with some intermediate support around 1.2760 level.