Cable holds a positive tone but remains limited by the 20-day SMA. The GBP/USD pair is trading sideways on Monday, consolidating modest gains.
Mixed US dollar
The greenback is posting mix results across the board while the pound remains flat on a quiet US session. The improvement in risk sentiment on hopes about a US-China trade deal, weakened the US Dollar earlier today. With Brexit headlines easing after last week extension, attention could turn to UK data. In the US, data released today came in better-than-expected.
The NY Empire State Manufacturing Index surprised to the upside rising to 10.10 for the current month from 3.7 and above the 6.0 expected. The report boosted the greenback only modestly.
To the upside, the GBP/USD is facing a strong resistance around 1.3120 that is also the 20-day moving average. A daily close on top could point to more gains as it also would be the breakout of the current range. To the downside, the immediate support might be seen at 1.3055. A daily close clearly below 1.3030 would point to further losses, exposing 1.3000 and the April low at 1.2980.
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