GBP/USD spikes back above 1.3100 handle
• Retakes 1.31 mark and beyond after May’s comments.
• Convincing move beyond 1.3130 needed for additional gains.
The GBP/USD pair traded with a positive bias for the second consecutive session on Monday and spiked above the 1.3100 handle, back closer to Friday's post-NFP swing high.
Currently trading around 1.3115-20 band, testing session tops, the pair's steady climb since the early European session got an additional boost from some positive comments by the UK PM Theresa May.
Speaking at the CBI conference in London on Monday, May welcomed the beginning of internal EU discussions on future relationship post-Brexit and seeks to give business as much certainty as possible.
Meanwhile, possibilities of some trading stops being triggered, on a move back above 100-day SMA hurdle, accompanied with a modest US Dollar pull-back might have collaborated to the pair's sharp uptick over the past couple of hours.
Today's US economic docket lacks any major market-moving economic releases, and against the backdrop of last week's dovish BoE rate hike, it would now be interesting to see if the pair is able to build on the up-move or once again runs through some fresh supply at higher level.
• GBP futures: rebounds stay tepid
Technical levels to watch
A sustained move beyond 1.3130 area (Friday's swing high) is likely to accelerate the up-move towards 1.3180 intermediate hurdle ahead of the 1.3200 handle. On the flip side, weakness back below 100-day SMA, near the 1.3100-1.3090 region, would turn the pair vulnerable to drop back towards the 1.3040-30 support region.