GBP/USD keeps rising above 1.2925 to highest in 13 days

GBP/USD resumed the up move during the American session, broke above 1.2925 and reached at 1.2943, the highest level since August 15. The pair is holding near the highs, with a bullish tone and consolidating on top of 1.2900. 

The pound extended the recovery that started on Friday, on a move supported mainly by a decline of the US dollar. The greenback weakened on Friday after Yellen speech and kept a bearish tone today. Trump, Hurricane Harvey and Yellen weighed on the US dollar. Later during the week, US employment data (ADP on Wednesday and NFP on Friday) could offer some relief to the dollar. 

Financial markets were closed in the UK on Monday. Nevertheless, the third round of Brexit negotiations started today in Brussels. “We must start negotiating seriously”, said EU's Barnier.

GBP/USD Technical levels 

GBP/USD is about to post the first daily close above the 20-day moving average in almost four weeks. The line stands at 1.2920 and if the pound holds on top it could offer support for the days ahead. 

In the short-term, Valeria Bednarik, Chief Analyst at FXStreet notes that the pair maintains the positive tone, “with the 4 hours chart showing that technical indicators keep heading higher, despite being in overbought territory, the price holding well above a bullish 20 SMA, and the price now challenging its 200 EMA, around the mentioned daily high.”

According to Bednarik, a stronger resistance comes at 1.2965; she warns that a break above is required to confirm additional gains ahead.