GBP/USD eases from highs, still comfortable above 1.35 mark

The GBP/USD pair trimmed some of its early strong gains and retreated around 40-pips from session tops, albeit has held comfortably above the key 1.35 psychological mark.

Currently trading around 1.3530-35 band, the pair's retracement from higher levels lacked any catalyst and could be attributed to a modest pickup in the US Dollar demand.

This coupled with some cross driven weakness, with the EUR/GBP cross finding dip demand near the 0.8785-75 strong support, further collaborated towards keeping a lid on the major's up-move.

Meanwhile, the release of BoE's FPC (Financial Policy Committee) statement did little to provide any fresh impetus for the major. The pair has managed to hold its neck above the 1.35 handle as investors now look forward to fresh developments/news coming out of the fourth round of Brexit talks. 

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Later during the day, speeches by influential FOMC members - New York Fed President William Dudley, Chicago Fed President Charles Evans and Minneapolis Fed President Neel Kashkari, would influence Fed rate hike expectations and also contribute towards the pair's movement on Monday.

Technical levels to watch

Any subsequent retracement below the 1.35 mark, leading to a slide the 1.3480 level, could drag the pair back towards the lower end of 6-day old trading range support near mid-1.3400s.

On the upside, momentum above 1.3570-75 zone now seems to confront strong hurdle near the 1.3600 handle, above which the pair is likely to dart towards yearly tops resistance near 1.3660 level.