GBP/USD inching back closer to 1.32 handle

   •  Recovers over 100-pips from Friday’s 3-week low.
   •  UK consumer credit data and BOE rate hike prospects underpin.
   •  Month-end flows might infuse some volatility ahead of BOE. 

The GBP/USD pair built on its steady up-move through the mid-European session and recovered over 100-pips from Friday's 3-week lows.

Currently hovering around 1.3180 level, the pair's goodish up-move at the start of a new trading week could be solely attributed to a modest US Dollar profit-taking slide, triggered by a sharp slide in the US Treasury bond yields. 

The pair on Friday found decent support near 100-day SMA, held since late August, and hence, some follow-through technical buying/short-covering could also be one of the factors driving the pair higher. 

Meanwhile, today's release of mostly in-line/better-than-expected UK consumer credit data - net lending to individuals and mortgage approvals, accompanied with prospects for a BOE rate hike move this week (though already priced in) remained supportive of the pair's steady recovery move back closer to the 1.3200 handle.

It, however, remains to be seen if bulls maintain their dominant position or fresh selling pressure emerge at higher level amid month-end flows, which tends to infuse volatility across the FX market.

Today's second-tier US economic data - core PCE price index and personal income/spending data, is unlikely to be a game changer as investors' attention would remain glued to this week's central bank meetings and Friday's keenly watched NFP data.

Technical levels to watch

The ongoing bullish momentum is likely to confront immediate resistance near the 1.3200 handle and is closely followed by the 1.3225-30 supply zone, above which the pair is likely to dart towards reclaiming the 1.3300 mark.

On the flip side, 1.3160 level now becomes an immediate support to defend, which if broken could accelerate the fall back towards the 1.3100 handle en-route 100-day SMA strong support near the 1.3065 region.