FXStreet — The multi-day low was in the vicinity of the 1,2865 formed, and from here, the GBP/USD with the increasingly positive momentum on 1,2900 recover.
Currently, the trade takes place to 1,2920/25, where the session highs to be tested. The Couple benefited from the surprisingly strong reading of UK PMI production rose in April from 54.2 previously to 57.8, while the forecast was at 54.0.
Add to that the weaker sentiment towards the US dollar index, even though the US Treasury bond yields have increased slightly. This helped reverse the Pair and the recent decline in the context of renewed Concerns of a hard Brexit.
Today there is no important data from the USA and the markets prepare for the most important Events this week – the FOMC meeting on Wednesday and the monthly employment data (NFP) on Friday. Before that, on Wednesday the publication of UK construction PMI for some volatility.
The FXStreet chief analyst Valeria Bednarik says: «Over 1,2920 room to 1.2964 to the multi-month high last week, and the rally may continue to 1,3000.»
«1,2830 the risk is shifted to below the 1,2770 would, today, be the focus,» she added.
• GBP/USD Outlook is quite positive
** FXStreet News Editorial, FXStreet**