GBP/USD remains well bid near 1.3600

GBP/USD now attempts to consolidate its promising start to the week, hovering around the key 1.3600 zone and following the broad-based upbeat tone in the risk complex. Cable's positive price action comes in tandem with fresh selling pressure on the Greenback and easing fears on the Middle East front.

GBP/USD Technical Overview

The Relative Strength Index (RSI) indicator on the 4-hour chart stays slightly above 50 and GBP/USD trades above the 20-period, 50-period and the 100-period Simple Moving Averages (SMA), suggesting that the bullish bias remains intact in the short term but lacks momentum.

On the downside, the 100-period SMA forms the immediate support level at 1.3530 before 1.3460 (static level) and 1.3425 (200-period SMA). Looking north, resistance levels could be seen at 1.3600 (mid-point of the ascending channel), 1.3630 (static level) and 1.3700 (static level, round level).

Fundamental Overview

The US Dollar (USD) benefited from safe-haven flows on Friday and caused GBP/USD to end the day in negative territory, as geopolitical tensions escalated after Israel launched a military operation against Iran.

Over the weekend, Iran and Israel continued to exchange missile strikes. A spokesperson for the Israeli military said on Monday that Israel has destroyed one third of Iran's surface-to-surface missile launchers and added that they have achieved aerial superiority over Iran.

Meanwhile, Iranian foreign ministry spokesperson Esmaeil Baghaei said on Monday that the Iranian parliament is preparing a bill to leave the nuclear Non-Proliferation Treaty (NPT) and added that they remain opposed to developing of weapons of mass destruction. Following these developments, markets remain relatively cautious, helping the USD stay resilient against its peers.

The economic calendar will not feature any high-impact data releases on Monday. Ahead of the Fed and the BoE meetings, Retail Sales data from the US on Tuesday and Consumer Price Index data from the UK on Wednesday could trigger short-lasting market reactions.