GBP/USD retreats to session lows, around 1.2330 level
- Some renewed USD selling bias helped GBP/USD to stage a modest bounce on Monday.
- A combination of factors revived the USD demand and capped the pair near 1.2400 mark.
- Investors now look forward to the resumption of the EU-UK post-Brexit trade deal talks.
The GBP/USD pair retreated over 50 pips from daily tops and dropped below mid-1.2300s in the last hour, back closer to the lower end of its intraday trading range.
Having found some support ahead of the 1.2300 round-figure mark, the pair staged a goodish recovery move on the first day of a new trading week. The uptick was exclusively sponsored by the emergence of some fresh US dollar selling.
However, growing worries about a surge in new coronavirus globally extended some support to the greenback's relative safe-haven status. This coupled with a goodish pickup in the US Treasury bond yields helped revive the USD demand.
This comes amid persistent Brexit-related uncertainties and capped the GBP/USD pair, rather prompted some selling near the 1.2390 region. Hence, Monday's key focus will be on the resumption of the post-Brexit UK-EU trade deal negotiations.
The pair was last seen trading near the 1.2330 region. A subsequent fall below the 1.2300 mark might now be seen as a fresh trigger for bearish traders and set the stage for an extension of the bearish trajectory witnessed since early June.
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