GBP/USD recovers back closer to multi-month tops, 1.30 still seems elusive

The GBP/USD pair caught some fresh bids near mid-1.2900s and has now moved back closer to over 7-month tops touched in wake of Macron's win in the French Presidential election.

Currently trading around 1.2970-80 band, the pair defied the prevalent positive sentiment surrounding the US Dollar and has now recovered majority of its early lost ground despite of the prevalent. In absence of any fresh fundamental development, a modest retracement in the US treasury bond yields seems to be the only factor driving the pair higher. 

Against the backdrop of Friday's upbeat headline NFP numbers, market players now seemed convinced that the Fed would eventually move towards raising rates further at its June meeting, which should continue to underpin the greenback demand. 

Meanwhile, market largely ignored comments from Macron's economic adviser that Macron will be tough in Brexit negotiations, with investors seemed reluctant to carry / build on fresh GBP bearish bets ahead of this week's key event risk for the major - the BoE’s Super-Thursday. 

On the economic data front, a slightly disappointing release of the UK Halifax HPI did little to attract any fresh selling pressure around the major, albeit seems to have collaborated towards keeping a lid just below the key 1.30 psychological mark at least for the time being.

Later during the day, the release of LMCI data from the US and speech by the St. Louis Fed President James Bullard would now be looked upon for some fresh trading impetus.

Technical levels to watch

Momentum above 1.2980 level might continue to confront immediate resistance near the 1.30 handle, which if conquered has the potential to continue boosting the pair further towards 1.3025-30 intermediate resistance ahead of 1.3080-85 important hurdle. 

On the flipside, a convincing break below mid-1.2900s could get extended towards 1.2920 level, below which the pair is likely to accelerate the slide even below the 1.2900 handle towards testing 1.2865-60 horizontal support en-route 1.2830 level.