GBP/USD re-takes 1.2900 ahead of a quiet session

The GBP/USD pair kept its upside consolidation phase intact in Asia just under 1.29 handle this Monday, despite renewed buying interest seen around oil prices, which could lift overall market sentiment.

GBP/USD capped below 5-DMA at 1.2898

The major continues to flirt with daily tops reached last hour at 1.2896, and awaits fresh impetus for next push higher, as the greenback remains broadly subdued amid weaker treasury yields, in the wake of diminishing bets of a June Fed hike. Friday's disappointing US data reduced odds of a June Fed rate hike to 80% from 90% seen on Thursday.

The spot may regain 1.29 handle in the day ahead, as the US dollar is expected to meet fresh supply across the board once the European trading gets underway, with the European traders reacting negatively to downbeat US retail sales and CPI data.

Meanwhile, renewed pick-up in buying interest in oil prices could lift investors' moods across the financial markets, which may provide extra legs to the upside in the higher-yielding currency GBP. Oil prices jumped in Asia, following reports of Russia and Saudi Agree output cuts need to be extended until March 2018.

GBP/USD Levels to consider            

A break above 1.2900 (round figure) could lift the pair above1.2961 (May 9 high), beyond which a test of 1.2990 (7-week high) is imminent. Conversely, a break below 1.2879 (classic S1/ Fib S2), leading to a subsequent break below 1.2842/29 (May 12&4 low) is likely to drag the pair towards testing its next support near 1.2800 (key support).