GBP/USD sits at session tops, around mid-1.2800s amid low volatility and thin liquidity

The GBP/USD pair staged a goodish recovery bounce and eroded part of Friday's sharp losses to one-month lows, below the 1.2800 handle. 

Currently trading around 1.2845 region, the pair gradually moved higher through European trading session despite of the weekend polls revealed narrowing lead for May's Conservative party lead. With the UK general election less than two-weeks away, it would be interesting to see if the pair is able to build on the recovery move or runs through some fresh offers at higher levels amid renewed concerns over a possible 'hard Brexit' scenario.

The ongoing recovery move lacked any fundamental drivers and could be solely attributed to short-covering on the back of a modest US Dollar retracement amid low volatility and thin liquidity conditions in wake of a bank holiday in the UK and the US.

With a high degree of market conviction that the Fed would eventually move towards raising interest rates in June, this week's NFP data would be looked upon for reinforcement and would eventually help determine the greenback's near-term trajectory.

Fed is tightening in a gradual way – BMO CM

Also in focus this week would be a slew of important macro data due for release at the beginning of a new month and incoming UK polls, which could possibly contribute towards making this an eventful week for the major. 

US NFP and upcoming polls of UK in focus this week - Rabobank

Technical levels to watch

Any further up-move beyond mid-1.2800s might confront resistance near 1.2880 horizontal level, above which the momentum could get extended towards 1.2900-1.2910 strong support break-point, now turned important resistance. On the flip side, weakness back below 1.2820 level, leading to a subsequent break below the 1.2800 handle, would turn the pair vulnerable to extend the slide even below 1.2775-70 support (Friday's) and head towards testing sub-1.2700 support area.