GBP/USD spikes to multi-day tops and retreats, holds above 1.22 handle

The greenback extended post-NFP corrective slide, helping the GBP/USD pair to surge through the 1.2200 handle. The pair, however, quickly retreated few pips from multi-day tops and is currently trading around 1.2215 region.

Despite of an upbeat headline NFP print, showing the US economy added 235K new jobs in February, market participants seemed disappointed by dismal average hourly earnings growth, at 0.2%, and triggered a short-covering bounce for the major. A modest pull-back in the US treasury bond yields have also been supportive of the US Dollar corrective move as market participants continue to reposition ahead of this week's key event risks.

This week's important market moving events / releases include - the FOMC decision and UK employment details on Wednesday, followed by the BoE monetary policy decision on Thursday. 

Meanwhile, possibilities of some stops being triggered, on a sustained break through the 1.2200 handle, could have also collaborated to the pair's sharp spike in the past hour or so.

Monday's key focus would be a yet another debate on the Brexit bill, where MPs are expected to reject the two changes made to the Brexit bill in the House of Lords and clear the UK PM Theresa May's intent to trigger Article 50 by the end of this month.

In absence of any other major market moving economic releases on Monday, the pair remains at the mercy of broader market sentiment surrounding the greenback and the US bond yield dynamics.

Technical levels to watch

Bulls would be eyeing for a follow through buying interest beyond 1.2240 level, above which the pair is likely to aim back towards reclaiming 1.2300 handle. On the flip side, retracement back below the 1.2200 handle, leading to a subsequent weakness below 1.2165 horizontal support, would negate prospects of any further recovery and turn the pair vulnerable to head back towards 1.2100 round figure mark.