GBP/USD holds stable near 50-DMA, around mid-1.2900s

The GBP/USD pair struggled to sustain its early up-move beyond 50-day SMA hurdle and has now retreated around 25-30 pips from two-week highs near the 1.2980 region, touched during the early European session.

The pair to build on last week's recovery move from 2-month lows but seemed lacking conviction. The pair ran through some fresh offers after the European Commission Chief Jean-Claude Juncker repeated the EU position on Brexit negotiations that talks on EU-UK trade will not begin until Brexit divorce issues are agreed upon and was also noted saying that none of the UK position papers is satisfactory. 

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Further downside, however, remained cushioned amid persistent greenback selling pressure, with the key US Dollar Index languishing near its lowest level since January 2015 amid escalating geopolitical tensions. 

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Today's US economic docket features the release of US consumer confidence index, which would now be looked upon for some short-term trading impetus but the key focus would remain on any fresh news/developments coming out of the ongoing Brexit talks. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "The next key resistance is the 1.3000 threshold, followed by 1.3045. Gains beyond this last seem unlikely at the time being, but in the case of an upward acceleration through it, 1.3100 comes next. The 1.2920/30 region is the immediate support, where buyers should now re-appear, although below this last, the decline can extend down to 1.2870."