GBP/USD retreats from 1-1/2 week tops, still comfortable above 1.2800 handle

   •  A modest USD rebound prompts some selling at higher levels.
   •  Brexit headlines exert some additional downward pressure.
   •  Focus remains on a fresh round of EU-UK Brexit negotiations.

The GBP/USD pair quickly retreated around 20-30 pips from 1-1/2 week tops, albeit has managed to hold comfortably above the 1.2800 handle.

The US Dollar selling pressure, triggered by the US President Donald Trump's overnight criticism over the Fed's monetary policy tightening, now seems to have abated and was seen as one of the key factors prompting some selling near mid-1.2800s. 

Adding to this, the latest Brexit headlines, wherein the EU was said to have low expectations over wrapping up Brexit negotiations before the EU Summit in October, exerted some additional downward pressure on the British Pound.

The retracement slide, however, remained limited and the pair, so far, has kept positive tone for the fourth consecutive session as traders seemed reluctant to place any aggressive bets ahead of a fresh round of EU-UK Brexit negotiations, planned to take place on Tuesday and Wednesday. 

Investors will also pay close attention to any news/developments coming out of a crucial meeting between the UK Brexit minister Dominic Raab and the European Union's chief Brexit negotiator Michel Barnier, which might influence the GBP price dynamics and eventually provide some fresh impetus.

Technical levels to watch

The 1.2800-1.2790 region now seems to protect the immediate downside, below which the pair is likely to accelerate the slide towards 1.2765 horizontal support. On the upside, momentum beyond 1.2845-50 region now seems to assist the pair further towards reclaiming the 1.2900 round figure mark.