The GBP/USD pair recovered some ground at the beginning of the week, riding up to 1.3074 after London’s opening, with the dollar retracing and stocks trading firmly in the region. A modest recovery in oil prices is also supporting the Pound.
The UK macroeconomic calendar will remain empty until next Wednesday, when the kingdom will release the BOE’s quarterly bulletin, the only piece of relevant data for this week.
The GBP/USD pair retreated from the mentioned high, but holds on to gains around the 1.3050 level, and the latest recovery seems merely corrective, particularly considering that the pair has managed to post a lower low daily basis, at 1.2993. In the 4 hours chart, the 20 SMA maintains a sharp bearish slope   far above the current level, while the technical indicators consolidate near oversold territory, showing no actual directional strength.
The immediate short term support comes a 1.3025, and below it, the pair can retest the mentioned daily low, while further slides can see the pair extending down to the 1.2960 price zone. Above the daily high, on the other hand, the pair can extend its recovery up to the 1.3120/30 region, with further gains unlikely for the upcoming sessions.
View live chart of the GBP/USD pairÂ
