GBP/USD firmer, approaches 1.2750

The British Pound has started the week on a firm note, prompting GBP/USD to extend gains to the mid-1.2700s ahead of the opening bell in the Old Continent.

GBP/USD focus on politics

The pair is advancing for the fourth session in a row today, flirting with 5-day tops and extending the bounce off last week’s lows in sub-1.2600 levels.

GBP stays bid ahead of the meeting between UK’s PM Theresa May and DUP’s Leader Foster later in the morning. Recall that both leaders aim to form a minority government after Conservatives lost majority at the latest elections.

Near term price action around the Sterling is then poised to gravitate within the UK’s political scenario and the developments from the Brexit talks that started last Monday.

Further news around GBP saw speculative net shorts retreating to 2-week lows in the week to June 20, as per the latest CFTC report.

Data wise today, BBA’s mortgage approvals are only due in the UK docket, while May’s durable goods orders are expected across the Atlantic.

GBP/USD levels to consider

As of writing the pair is up 0.22% at 1.2747 and a breakout of 1.2793 (20-day sma) would open the door to 1.2818 (high Jun.14) and then 1.2828 (55-day sma). On the other hand, the next support aligns at 1.2638 (100-day sma) followed by 1.2587 (low Jun.21) and finally 1.2550 (200-day sma).