GBP/USD retraces but holding its strength to 1.3250

The US Dollar continues to face selling pressure against its British counterpart, with the GBP/USD pair surging to 1.3200 neighborhood before retracing back to currently trade around 1.3250 region.

The pair is attempting to recover some of its steep losses recorded on Friday and the up-move is back by weakness in traditional safe-havens that is reflective of fading risk aversion after the failure of a military coup in Turkey over the weekend. 

A quiet economic data docket is unlikely to trigger any major momentum and the pair might continue to be driven by the prevalent risk sentiment. 

However, a slew of important macroeconomic releases slated for release during the course of the week from UK would assist investors to determine the near-term direction for the pair. Upcoming UK releases includes - CPI, jobs report, monthly retail sales and PMI data.

Technical levels to watch

On a sustained strength above 1.3250, the pair is likely to extend the bullish momentum back towards 1.3340 important resistance, which if conquered decisively seems to assist the pair to break through last week's BOE-led swing highs resistance near 1.3475-80 region and head towards reclaiming 1.3500 psychological mark. 

Alternatively, reversal from current levels, and a subsequent drop below 1.3200 handle has the potential to drag the pair back towards an intermediate support near 1.3150 level before the pair continues with its downward trajectory towards its next major support near 1.3100 round figure mark.