GBP/USD bounces off lows but remains capped below 1.32 handle

After an initial dip to 1.3168 level, the GBP/USD pair gained some traction and might now be looking to reclaim the 1.3200 handle during early European session.

The pair's uptick over the past hour or so lacked any catalyst and could be solely attributed to some cross-driven strength, with the EUR/GBP cross slipping below the 0.9100 handle following the latest comments by Member of the ECB's Executive Board, Benoît Coeure.

The up-move, however, lacked any strong follow through momentum amid broad based greenback strength. The fact that weekend passed without any fresh geopolitical developments, a goodish US Dollar recovery from over 2-1/2 year lows touched on Friday kept a lid on any further up-move for the major.

Meanwhile, investors would also refrain from initiating/carrying aggressive bets ahead of this week's important macro releases from the US and UK, along with the very important BoE monetary policy decision. 

Technical levels to watch

Sustained momentum beyond the 1.3200 handle, leading to a subsequent strength above 1.3215 level could get extended towards early August swing highs resistance near 1.3265 level.

On the flip side, 1.3170-65 zone might continue to protect immediate downside, below which the pair is likely to correct back to 1.3120 level en-route the 1.3100 handle.