GBP/USD trims gains, still well bid at 1.3050

Having posted a session high at 1.3075, the GBP/USD pair trimmed some of its strong gains and has now retraced back to currently trade around 1.3050 region. 

In absence of any fresh fundamental trigger, the pair's recovery has been solely driven by a broad based weakness around the greenback. Moreover, the ongoing recovery could also be attributed to some profit taking from bears following Friday's sharp sell-off of nearly 250-pips from session high led by upbeat US CPI print. 

Market attention remains on the upcoming Fed monetary policy decision on Wednesday, which would assist investors to determine the near-term trajectory of the pair. With majority of the market participants expecting the central bank to refrain from taking any action this time, the accompanying statement and subsequent press conference would be looked upon for possibilities of any rate-hike in 2016. 

Technical levels to watch

From current levels, 1.3075-80 zone might continue to act as immediate hurdle, which if cleared is likely to assist the pair back towards 1.3140 horizontal level ahead of its next major resistance near 1.3190-20 area. On the downside, 1.3000 psychological mark remains key immediate support to defend below which the pair is likely to turn vulnerable to head back towards 1.2900 round figure mark with some intermediate support around 1.2950 region.