GBP/USD moves sideways below 1.2700 against a somewhat firmer Dollar

• The Pound trades sideways after failing to break 1.2730.
• Traders are cautious ahead of a string of key US data this week.
• The broader positive trend remains intact.

The Pound is moving sideways, without a clear direction on Monday, after having failed to extend gains above 1.2760 amid a somewhat stronger US Dollar.

Investors have grown more cautious on Monday after the risk rally witnessed on Friday. With a string of US indicators ahead ending with the Nonfarm Payrolls report on Friday, investors are looking for more data to assess the Fed’s next steps.

Beyond that, the deteriorating situation in the Middle East,  with news about the attacks on two commercial vessels in the Red Sea has dampened risk appetite further.

In the calendar today the main event will be US Factory orders. On Tuesday, the focus will be on the UK and US Services PMIs, and the US Jolrs job openings, the first of several US employment indicators.

From a technical perspective, the pair maintains the broader upside trend intact, with 1,2730 resistance closing the path towards 1.2820 and 1.2900. Supports are 1.2600 and 1.2480.

Technical levels to watch