GBP/USD trades with positive bias around 1.3530-1.3535 area, lacks bullish conviction
GBP/USD attracts some dip-buyers at the start of a new week amid subdued USD price action.
Despite the upbeat NFP report, the USD bulls seem reluctant ahead of the US-China trade talks.
The fundamental backdrop warrants caution before placing aggressive intraday directional bets.
The GBP/USD pair edges higher during the Asian session on Monday and for now, seems to have stalled its retracement slide from the highest level since February 2022, around the 1.3615 region touched last week. The uptick, however, lacks bullish, with spot prices currently trading around the 1.3530-1.3535 region, up only 0.05% for the day.
The US Dollar (USD) struggles to capitalize on Friday's upbeat US jobs data-inspired move higher and kicks off the new week on a subdued note, which, in turn, is seen as a key factor lending support to the GBP/USD pair. Moreover, Bank of England (BoE) Governor Andrew Bailey's remarks last week, saying that the central bank will stick to a gradual and careful approach to cutting interest rates amid trade uncertainties, act as a tailwind for the currency pair.
Meanwhile, a stronger-than-expected US Nonfarm Payrolls (NFP) report dampened hopes for imminent Federal Reserve (Fed) rate cuts this year. This is holding back the USD bears from placing fresh bets and capping the upside for the GBP/USD pair. Investors also seem reluctant and opt to wait on the sidelines ahead of the key US-China negotiations in London aimed at defusing the high-stakes trade dispute between the world's two largest economies.
Moving ahead, there isn't any relevant market-moving economic data due for release on Monday, either from the UK or the US, leading the GBP/USD pair at the mercy of the USD price dynamics. Nevertheless, the aforementioned fundamental backdrop makes it prudent to wait for strong follow-through buying before positioning for the resumption of the pair's well-established uptrend witnessed over the past two months or so any meaningful intraday gains.
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