GBP/USD firmer, gains still capped at 1.3100

The Sterling is following the bid sentiment in the risk-associated space at the beginning of the week, with GBP/USD sidelining below the 1.3100 handle.

GBP/USD bounces off 1.3020

The pair is posting decent gains in the 1.3080 region on Monday, coming up from Friday’s lows near 1.3020 in the wake of stronger-than-expected US Non-farm Payrolls.

GBP keeps navigating the lower bound of its range between 1.3000 and 1.3350, while it remains under pressure following the recent dovish message from the bank of England and a pick up in the demand for the greenback.

In the meantime, GBP speculative net shorts remained in record levels around 82K contracts during the week ended on August 2, according to the latest CFTC positioning report.

GBP/USD levels to consider

As of writing the pair is advancing 0.10% at 1.3083 and a break below 1.3019 (low Aug.5) would expose 1.2849 (low Jul.11) and finally 1.2796 (2016 low Jul.6). On the flip side, the next up barrier lines up at 1.3373 (high Aug.3) followed by 1.3481 (high Jul.15) and finally 1.3535 (high Jun.29).