GBP/USD hits fresh daily high but remains near monthly lows

• GBP/USD rebounds and turns positive but still facing pressure.
• Pound among top performers of the American session

The GBP/USD pair bottomed at 1.3513 earlier today and then bounced to the upside. Recently printed a fresh daily high at 1.3574. The recovery eased slightly below Friday’s highs. Despite today's modest recovery, cable continues to face pressure amid a stronger US Dollar. During the last hours, the greenback pulled back. Dollar Index Futures pulled back from multi-month highs to 92.50.

On Monday, the pound is among the top performers ahead of the Bank of England meeting. Market analysts expect no change from the central bank, compared to several days ago where the forecast was titled in favor of a rate hike. The decision will be released on Thursday with the minutes and the Quarterly Inflation Report. In the US, key data over the week includes PPI (Wednesday) and CPI (Thursday).

Cable remains above 1.3550 moving with a modest bullish bias for the day but still close to last week lows. The chart still shows significant bearish pressure. Today’s recovery could point to some consolidation ahead of the BoE meeting.

Technical levels

To the downside, support levels might be located at 1.3525, 1.3480/85 (last week low) and 1.3455/60 (Jan 11 low). On the upside, resistance might be seen at 1.3595, 1.3630 and 1.3665 (May 2 high).