GBP/USD jumps above 1.32 in Europe

GBP/USD rose to a session high of 1.3222 as the demand for the US dollar remains weak and the investors brace up for the data-heavy week ahead in the UK.

The UK consumer price index is seen rebounding 0.5% m/m in August, compared to a 0.1% drop in July. The annualized figure is likely to come-in at 2.8%. Later in the week, UK wage growth numbers and the Bank of England rate decision will attract market attention.

Lawmakers are due to vote later today or early Tuesday on the European Union (Withdrawal) Bill, which aims to convert around 12,000 EU laws and regulations into domestic statute on the day the country leaves the bloc in March 2019. The UK government has warned of a chaotic Brexit if lawmakers don't back the bill.

At press time, the currency pair was well bid at 1.317 levels. With no major data due for release in the US, the spot remains at the mercy of the broader market sentiment, which is likely to be in favor of risk assets, courtesy of the better-than-expected Chinese PPI released on Saturday.

GBP/USD Technical Levels

FXStreet Chief Analyst Valeria Bednarik writes, "technically, the 4 hours chart shows that the 20 SMA maintains a strong bullish slope below the current level, now providing a dynamic support around 1.3120. In the same chart, technical indicators head nowhere, but within overbought territory, maintaining the risk towards the upside. Friday's high is the immediate resistance at 1.3223, ahead of the mentioned 1.3266 level for today, while below the mentioned daily low, the pair can extend its decline towards the mentioned 20 SMA at 1.3120."