GBP/USD grinding it out near the topside at 1.4050

• Sterling is shifting in place but looking for room to move as holiday volumes constrain market direction.
• A quiet data week for the GBP leaves the pair exposed to market expectations for Friday's NFP.

The GBP/USD is bouncing on thin holiday volumes, reaching into the 1.4050 area as the European markets grind awake for the new week, but the Easter Monday holidays see market liquidity on the thin side with a majority of institutional traders out for the long weekend.

With very little macro events scheduled for the UK this week, the focus will be on the US' Non-Farm Payrolls dropping on Friday, and traders will be looking into the wage growth figures buried in the jobs reports to get a clue of where the US Fed is headed with multiple rate increases anticipated for this year.

The Sterling is looking at a potential upswing according to ING, where analysts have noted that “looking at GBP's report card in March – Brexit politics, UK economic data and the Bank of England policy outlook have all turned into short-term positives for GBP  – helping it to retain its status as the ‘Comeback Kid’ in FX markets.”

GBP/USD Levels to watch

The GBP/USD is still middling on holiday markets and holding within Friday's range, and as FXStreet's own Haresh Menghani noted, "immediate resistance is pegged near 1.4075 level, above which the pair is likely to aim towards surpassing the 1.4100 handle and head towards testing the 1.4135-40 supply zone. On the flip side, the 1.4020 area now seems to protect the immediate downside, which if broken might prompt some fresh selling and continue dragging the pair towards 1.3965-60 horizontal support."