- GBP/USD attracted some dip-buying on Monday and reversed the weekly bearish gap.
- Retreating US bond yields weighed on the USD and extended some support to the pair.
- COVID-19 vaccine jitters might hold bulls from placing aggressive bets and cap gains.
The GBP/USD pair struggled to capitalize on its intraday bounce from multi-day lows and was last seen trading in the neutral territory, just above mid-1.3800s.The pair opened with a modest bearish gap and dropped to multi-day lows during the early part of the trading action on Monday amid sustained US dollar buying.That said, the ongoing pullback in the US Treasury bond yields held the USD bulls from placing aggressive bets and helped limit any further losses for the GBP/USD pair.
Pound/dollar has been setting higher lows since it hit a low of 1.3775 in early March. GBP/USD is seeing up and down consolidation move for the past 2 weeks between 1.400 psychological round figure mark resistance and 1.380 as support.
On the upside , a breach above 1.400 the upper boundary of consolidation range will drive the pair testing the 2021 swing high at 1.4180 region. On the flip side support is at 1.380, which is the daily low, if a break below will awaken the bears to test 1.3590
