GBP/USD climbs further beyond 1.2900 handle, closer to 2-month tops

   •  Chances of a delayed Brexit continue to extend some support to the British Pound.
   •  The USD gets a minor lift after upbeat US data and kept a lid on any strong up-move. 

The GBP/USD pair finally broke out of a two-day-old consolidative trading range and gained further beyond the 1.2900 handle, albeit retreated few pips post-US economic releases.

Hopes for a possible second referendum, an extension of Article 50 or no Brexit at all continued lending some support to the British Pound and helped the pair to reverse an early European session dip to an intraday low level of 1.2832.

Mario Blascak, FXStreet's own European Chief Analyst explains: “Deeply divided parliament rejected the Brexit deal proposed by Theresa May’s government by a humiliating margin of 230 votes on Tuesday just to support the government in a no-confidence vote on Wednesday evening with both measures implying increased chances of a delayed Brexit.”

The pair rallied over 90-pips, closer to two-month tops set earlier this week, and the up-move followed the UK Labour party leader Jeremy Corbyn's comments that they could back a second Brexit referendum if a no-deal scenario looks likely.

However, a modest US Dollar uptick, which got an additional boost from today's better-than-expected US economic data - initial weekly jobless claims and Philly Fed manufacturing index, kept a lid on any strong follow-through up-move, at least for the time being. 

It would now be interesting to see if the pair is able to build on the positive momentum to confirm a near-term bullish breakout or continues with its struggle to make it through the 1.2920-30 region as the key focus remains on the UK PM Theresa May's Brexit 'plan B'.

Technical outlook

“The GBP/USD is expected to remain capped in a sideline trend with 1.28020-1.2800 targets on the downside while a 100-day moving average at 1.2891 and 1.2900 remain targets on the upside with next hurdles at around 1.2950,” Mario added further.