GBP/USD: Bulls regain poise, heads back towards 1.4200

• Finds buyers just ahead of 1.4150, Brexit optimism underpins.
• Cable to remain at the mercy of broader markets sentiment today.

The GBP/USD pair staged a quick comeback over the last hour, having tested the key support of the 1.4150 barrier, as the bulls continue to cheer an improvement in risk sentiment on hopes that the US and China will seek a solution to ease the ongoing trade concerns.

Moreover, the renewed optimism over the Brexit deal also continues to underpin the sentiment around the pound, especially after the UK Brexit Minister Davis said that a deal with the EU is "incredibly probable, very, very highly probable".  The comments from Davis overshadowed the UK’s Labour party’s demand that the UK should have a final say in any Brexit deals.

Meanwhile, the US dollar continues to remain on the back foot across the board, as markets remain wary heading into a fresh week, with the political and trade war concerns to remain on top of the investors’ minds.

Later today, “in absence of any major market moving economic releases, the USD price dynamics might continue to act as an exclusive driver of the pair's momentum. Later during the NY session, the New York Fed President William Dudley's scheduled might help traders grab some short-term trading opportunities,” Haresh Menghani, Analyst at FXStreet notes.

GBP/USD levels to watch

According to Jim Langlands at FX Charts, “having reached the major descending trend resistance at 1.4220, which has so far been rejected, this will be the major resistance to watch for now, but ahead of which, Friday’s high (1.4171) and 1.4200 will be hurdles to be overcome. Beyond 1.4220 would target 1.4250/70 although that remains for another day I suspect, but above there would head back to 2018 high at 1.4345. On the downside, support will be seen at 1.4100 and at 1.4085/75, below which would signal that a trend top may be in place and could head towards 1.4025.”