• Rees-Mogg's comments to back May's Brexit deal provided a goodish intraday lift.
• News that DUP MPs prefer a long Brexit delay over May’s deal prompts some selling.
• Rebounding US bond yields underpin the USD and contributes to the pull-back.
The GBP/USD pair trimmed a part of its early gains to multi-day tops and has now retreated over 40-pips from the daily swing high level of 1.3261.
Having retested the overnight swing lows, around the 1.3160-55 region, the pair witnessed a goodish intraday turnaround and rallied over 100-pips in reaction to leading Brexiteer Jacob Rees-Mogg's comments that he could back the UK PM Theresa May's Brexit deal rather than risk the UK staying in the EU.
The uptick, led by reviving hopes that the May's Brexit plan would eventually pass through the Parliament, quickly ran out of steam and met with some fresh supply after Sky News reported that DUP's MPs are still opposed to the PM Theresa May's Brexit deal and prefer a long extension to Brexit - perhaps a year or more.
Adding to this, a solid recovery in the US Treasury bond yields helped the US Dollar to gain some positive traction during the early North-American session, which further collaborated towards capping any strong follow-through/the pair's modest pull-back in the last hour or so.
The downside, however, might remain cushioned amid absent strong follow-through USD buying in wake of the latest disappointment from the Conference Board's Consumer Confidence Index, coming in at 124.1 for April as compared to 131.4 reported in the previous month.
Moreover, investors might also be reluctant to place any aggressive bets and preferred to wait for further clarity as the focus now shifts to a possible third meaningful vote, expected to be held on Thursday, which might further contribute towards confining the pair in a narrow trading range.
Technical levels to watch
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