GBP/USD closes bullish opening gap, then pops back towards 1.2900

Amid persisting broad based US dollar weakness, the GBP/USD pair stalls its Asian retreat, as we progress towards the European opening bells.

GBP/USD: Brexit jitters weigh?

The spot extends its retreat below 1.2900 levels and fills in the bullish opening gap, which was experienced by a fresh selling-wave seen behind the US dollar, as the Asian traders reacted negatively to Friday’s speeches delivered by the Fed Chair Yellen and ECB President Draghi at the Jackson Hole Symposium.

The latest leg down seen in Cable can be also attributed to renewed Brexit concerns, as the UK enters a third round of negotiations with the European Union (EU) later this week. Scottish Brexit Minister: A no-Brexit deal is ‘unthinkable’

However, over the last hour, the pair is seen attempting a minor bounce back towards 1.29 handle, having found fresh bids near 1.2870 support. Later today, the GBP/USD pair will continue to track the USD dynamics amid a lack of fresh economic drivers from the UK docket, as the London markets remain closed on account of a National Holiday.

 GBP/USD levels to consider            

Haresh Menghani, Analyst at FXStreet notes: “With short-term indicators holding in bearish territory, the pair seems more likely to head back towards retesting the ascending trend-line support, currently near the 1.2800-1.2790 region. Conversely, momentum above 1.2920-25 supply zone, leading to a subsequent break through 50-day SMA hurdle, is likely to trigger a short-covering rally towards reclaiming the key 1.30 psychological mark. Any follow through up-move beyond the mentioned hurdles is likely to be capped at 1.3030-40 supply zone.”