- GBP/USD attracted some dip-buying on Monday and shot to multi-day tops in the last hour.
- The prevalent USD buying should cap the upside, instead prompt fresh selling at higher levels.
A sudden pickup in demand for the pound pushed the GBP/USD pair to four-day tops, around the 1.3835 region during the early European session, albeit quickly retreated few pips thereafter.
Following an early slide to the 1.3755 region, the pair caught some aggressive bids and turned positive for the third consecutive session on Monday. The strong intraday momentum assisted the GBP/USD pair to build on last week's bounce move from multi-week lows.
Apart from this, the latest leg of a sharp spike over the past hour or so was led by some technical selling on a sustained move beyond the 1.3800 round-figure mark. That said, the underlying bullish sentiment around the US dollar capped the upside for the GBP/USD pair.
Resistance awaits at 1.3870, which provided resistance in mid-March and coincides with the upper boundary of the channel , followed by 1.4000 psychological round figure mark.If the pair continues the bounce up, immediate resistance could be met at the 50-61.8% Fibonacci retracement level.Some support awaits at 1.3770, a former swing low, and it is followed 1.36890, being the March trough.
