GBP/USD hits fresh monthly tops, just above 1.2300 mark
- Falling US bond yields weighed on the USD and helped regain traction.
- The latest UK political headlines provided an additional boost to the GBP.
- A sustained move beyond the 1.2300 handle needed to impress bulls.
The GBP/USD pair built on its goodish intraday up-move and spiked to fresh monthly tops - levels just above the 1.2300 round figure mark in the last hour.
As investors tempered their optimism about the chances for a quick resolution to the US-China trade tensions, a fresh leg of a downfall in the US Treasury bond yields undermined the US Dollar demand and helped the pair to catch some fresh bids on Tuesday.
Brexit optimism helped gain traction
The pair traded with a positive bias for the third session in the previous four and the up-move was further supported by the fact that the UK opposition Labour party may be looking towards passing a law to stop a no-deal outcome instead of pursuing the course of a no-confidence motion.
This coupled with possibilities of some short-term trading stops being triggered on a sustained move beyond the 1.2270-75 region seemed to have further collaborated to the pair's latest leg of a sudden uptick over the past hour or so, though bulls lacked any strong conviction beyond the 1.2300 handle.
Hence, it will be prudent to wait for a strong follow-through buying before traders start positioning for any further near-term appreciating move towards reclaiming the 1.2400 round figure mark with some intermediate resistance near the 1.2360-65 region.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
