GBP/USD enters a consolidation phase around 1.28 mark

The GBP/USD pair traded with mild positive bias and moved further beyond the 1.2800 handle, closer to last week's swing high resistance near 1.2815-20 region.

As the much awaited Brexit talks gets underway, receding fears of a 'hard Brexit', especially after the disastrous UK snap election result, coupled with hawkish BoE vote was seen lending some support to the British Pound.

   •  UK: Focus on Brexit negotiations this week – BBH

Adding to this, a softer tone around the US Treasury bond yields, which failed to provide any fresh bullish impetus to the US Dollar, remained supportive of the bid tone surrounding the major. 

It, however, remains to be seen if the pair is able to build on the up-move or runs through fresh offers at higher level, and reaffirm broader near-term trading range, amid absent fundamental drivers in-terms of any major market moving economic releases. 

This week, investors will look forward to a slew of speeches from influential FOMC members to back prospects of a faster Fed rate-tightening cycle through 2017, which should influence sentiment surrounding the buck and eventually provide some short-term trading impetus.

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Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "The 200 EMA in the mentioned level stands at 1.2820, the level to break to confirm additional gains for this Monday, up to the 1.2850/60 region. Below 1.2810 on the other hand, the pair has scope to test Friday's low of 1.2751, with a directional breakout being unlikely for this first day of the week."