• USD accelerates bearish slide on German political news.
• US macro data eyed for some immediate USD respite.
The GBP/USD pair finally broke out of its Asian session consolidation phase and spiked through the 1.3600 handle to fresh 2018 highs.
A fresh wave of intense US Dollar selling pressure, led by the latest German political news, helped the pair to build on overnight sharp rebound from 1-1/2 week tops and continue gaining traction through the early European session.
Adding to this, possibilities of some trading stops being taken out on a sustained move above the 1.3565 region also seems to have collaborated to the pair's sharp upsurge over the past couple of hours.
Traders seemed to have largely ignored a goodish pickup in the US Treasury bond yields, with the prevailing strong bearish sentiment surrounding the greenback acting as an exclusive driver of the pair's bullish momentum.
With today's strong up-move, the pair has now added in excess of 150-pips as traders now look forward to the US economic docket, featuring the release of inflation figures and monthly retail sales, for some fresh impetus.
Technical levels to watch
From current levels, immediate resistance is now pegged near 2017 swing highs, around the 1.3655-60 region, above which the pair seems all set to move past the 1.3700 handle.
On the flip side, any pull-back below the 1.3600 handle might now find immediate support near the 1.3585-80 region, which if broken might drag the pair back towards the key 1.3500 psychological mark.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.