GBP/USD tests last week highs near 1.2480 and retreats

• US dollar mixed on Tuesday, Wall Street modestly lower. 
• GBP/USD holds near the 1.2400 area, as it has been the case since late Friday. 

The GBP/USD rebounded further after the beginning of the American session and tested last week highs. It peaked at 1.2472 and then pulled back. As of writing, was trading at 1.2410/15, practically flat for the day. 

The positive momentum eased after being unable to break above 1.2480 (last week high). The greenback was moving without a clear direction, like equity prices in Wall Street. The Dow Jones was falling 0.70%, but on the positive side, holding to most of it recent gains. 

Data from the US showed an expected decline in Consumer Confidence and a reading of the Chicago PMI above expectations. Economic numbers continued to be ignored by market participants as the outlook remains critical. On Thursday jobless claims and on Friday the non-farm payroll report would likely be watched closely. 

Negative month but far from the bottom 

The GBP/USD pair is about to post the third monthly decline in a row, with a loss of around 400 pips. The close far from the lows is positive for the pound. Cable bottomed at 1.1409 and then rebounded more than a thousand pips. From a technical perspective, the negative for GBP is the slide under the 20-week moving average, while the positive is the rebound back above the 1.20/1.21 long-term support. 

Technical levels