GBP/USD retakes 1.3100 mark and beyond amid fresh USD weakness

   •  Raab’s optimistic Brexit comments helped regain some positive traction.
   •  Renewed USD selling, despite positive US bond yields, remains supportive.

The GBP/USD pair regained some positive traction at the start of a new trading week and recovered a part of Friday's steep decline. 

The British Pound crashed across the board on Friday after the UK PM Theresa May said that the Brexit negotiation with the EU is “at an impasse” and dashed hopes for a favourable Brexit deal. 

With investors looking past the latest Brexit development, the pair stalled its retracement slide from over two-month tops and caught some fresh bids following the UK Brexit Secretary Dominic Raab's optimistic comments that they remain confident of a deal.

The rebound was further supported by a modest US Dollar retracement, which failed to capitalize on Friday's goodish rebound and seemed rather uninspired by a follow-through pickup in the US Treasury bond yields.

The pair has now climbed back above the 1.3100 handle, albeit lacked any strong conviction amid absent fundamental catalyst and reemerging Brexit uncertainties/a possible second Brexit referendum. 

Hence, it would be prudent to wait for a sustained move back above 100-day SMA before traders start positioning for the resumption of the prior appreciating move.

Technical levels to watch

The 100-DMA, currently near the 1.3155 region, now seems to act as an immediate strong resistance, above which the pair is likely to aim towards reclaiming the 1.3200 handle. On the flip side, renewed weakness back below the 1.3100 mark might continue to find some support near the 1.3160-55 region, which if broken might turn the pair vulnerable to extend the corrective slide.