GBP/USD Bulls To Remain Cautious Ahead Of May's Meeting With Merkel And Macron/EU Summit

The GBP/USD pair edged higher for the second consecutive session on Tuesday and jumped back above the 1.3100 round figure mark, or multi-day tops during the early European session. The British Pound found some support after the House of Lords approved Cooper-Letwin bill that would force PM to request an extension and avoid a no-deal Brexit on April 12. This coupled with optimism comments by the UK justice secretary - David Gauke, saying that meetings with Labour party have been constructive and that talks have found some common ground, provided an additional boost.

However, the fact that the cross-party talks are yet to produce any positive results and that conditions set by European leaders for an extension are not met seemed to cap further gains. The Brexit talks look set to intensify on Tuesday with the UK PM Theresa May's meeting with German Chancellor Angela Merkel and French President Emmanuel Macron later today, building the case for another Brexit delay at the upcoming EU summit on Wednesday and eventually provide some meaningful impetus to the major. 

Looking at the technical picture, the recent repeated failures to find acceptance below the key 1.30 psychological mark and subsequent rebounds from the very important 200-day SMA now seems to suggest some buying interest at lower levels. The mentioned region coincides with the lower end of a short-term ascending trend-channel extending from December 2018 and should act as a key pivotal point for the pair's near-term trajectory.

From current levels, a follow-through buying has the potential to lift the pair towards the 1.3155-60 intermediate resistance en-route the 1.3195-1.3200 supply zone. A sustained move beyond the mentioned barrier might negate any near-term bearish bias and set the stage for an extension of the positive momentum further towards the 1.3265-70 resistance area. 

On the flip side, any meaningful pullback now seems to find immediate support near the 1.3035 area, which is closely followed by the 1.30 handle and the 1.2980-75 region (200-DMA). A convincing break through the said confluence support will confirm a near-term bearish breakdown and accelerate the slide towards the 1.2900 handle before the pair eventually drops to test the 1.2865-60 support area.

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