GBP/USD back above 1.29 handle, closer to session tops

Having corrected to 1.2875 area, filling the weekly bullish gap, the GBP/USD pair gained some fresh traction and is now headed to the top end of daily trading range. 

The pair extended last week's modest recovery move from near two-month lows and had a good two-way move on Monday. Persistent US Dollar selling bias, as investors assessed economic impact of the devastating Hurricane Harvey, has been one of the key factors helping the pair to build on Friday's strong up-move led by disappointment from the Fed Chair Janet Yellen's speech at the Jackson Hole Symposium. 

   •  GBP/USD medium term up move ended at 1.3267 – Commerzbank

Meanwhile, financial markets in the UK are closed on Monday and hence, broader market sentiment around the USD is turning out to be an exclusive driver of the pair's movement at the start of a new week. 

On the economic data front, the release of goods trade balance and wholesale inventories data from the US provide little impetus, with traders looking forward to any fresh news/development coming out of the next round of Brexit negotiations starting today.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, the pair presents a positive stance in the short term, albeit the mentioned 1.2920/30 region has proved strong multiple times in the past and would need to clear it before rallying up to 1.2965, another strong static resistance area."

She further added, "1.2867, the low set last Friday during the American afternoon is the key support, as only below it the pair could lost the  bullish strength and turn back south towards the 1.2800/20 region."