GBP/USD refreshes session tops, above mid-1.3100s

   •  Extends Friday’s recovery from 100-day SMA support. 
   •  USD weakness, weaker US bond yields & BOE rate hike prospects underpinning. 

The GBP/USD pair extended its steady up-move through the early European session and has now recovered all of its Friday's losses to 3-week lows. 

Currently placed at fresh session tops, in the 1.3165-70 region, the pair build on its recovery move from 100-day SMA support and was being further supported by a broad based US Dollar retracement.

Speculations over the Fed Chair appointment triggered a sharp slide in the US Treasury bond yields, negating upbeat US GDP growth numbers, and seems to have prompted some profit-taking around the USD. 

Meanwhile, prospects of a BOE rate hike this week, though already priced in the market, underpinned the British Pound and remained supportive of the pair's up-move at the start of a new trading week. 

Today's economic docket features the release of net lending to individuals data from the UK, while from the US core PCE index would also be looked upon for some short-term momentum play.

Technical levels to watch

A follow through buying interest has the potential to extend the momentum towards the 1.3200 handle, above which the pair is could challenge 1.3225-30 heavy supply zone. On the flip side, 1.3125 level now becomes immediate support, which if broken could drag the pair back below the 1.3100 handle towards retesting 100-day SMA support near the 1.3065 region.