GBP/USD hits session tops around mid-1.2200s, lacks follow-through
- Falling US bond yields undermined the USD and extended some support to the pair.
- The intraday uptick was further supported by comments from UK Labour’s Starmer.
Following the previous session's pullback, the GBP/USD pair regained positive traction on Tuesday and climbed to session tops - around mid-1.2200s - in the last hour.
With investors looking past the overnight trade-related optimism, a fresh leg of a downfall in the US Treasury bond yields exerted some downward pressure on the US Dollar and assisted the pair to find decent support ahead of the 1.2200 round figure mark.
Brexit-related headlines continue to drive the sentiment
The intraday uptick was further supported by the UK opposition party Brexit Spokesman Keir Starmer's comments, which suggested that Labour may be looking towards passing a law to stop a no-deal outcome instead of pursuing the course of a no-confidence motion.
However, the fact that PM Johnson had sought legal advice from the UK's attorney general about the possibility of shutting down the parliament in order to prevent MPs forcing a further extension to Brexit might continue to weigh on the British Pound and cap further gains.
Hence, it will be prudent to wait for a strong follow-through buying before positioning for any further near-term appreciating move beyond the 1.2300 round figure mark amid absent relevant market moving economic releases from the UK.
Later during the early North-American session, the US economic docket - highlighting the release of the Conference Board's Consumer Confidence Index - might influence the USD price dynamics and further contribute towards producing some short-term trading opportunities.
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.
