GBP/USD refreshes session tops near mid-1.4100s, US data & Carney eyed

   •  Renewed USD selling triggers a sharp short-covering rally.
   •  Clarification on leaked Brexit document supports GBP. 
   •  US data/Carney’s testimony might provide fresh impetus.

The GBP/USD pair built on its intraday recovery move from sub-1.40 level and refreshed session tops during the early NA session.

A fresh wave of US Dollar selling pressure, prompted by a sharp retracement in the US Treasury bond yields, triggered the initial leg of short-covering bounce from 1.3980 level. The up-move took along some short-term trading stops placed near the 1.4075 region and continued fueling the pair's strong upsurge.

Meanwhile, comments by the UK PM Theresa May's spokesman, playing down the leaked government document predicting an economic hit from Brexit, provided an additional boost to the British Pound and further collaborated to the pair's bullish momentum further beyond the 1.4100 handle.

Currently placed at session tops, around the 1.4140-50 region, traders now look forward to the release of CB's Consumer Confidence Index from the US and the BOE Governor Mark Carney's testimony before the House of Lords Economic Affairs Committee for some fresh impetus.

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes: “The technical picture, however, shows that the upward potential is limited, as the price is below a bearish 20 SMA, while technical indicators have pared their advances, the Momentum still within negative territory, and the RSI at 52. Monday's high at 1.4158 is the immediate resistance, with gains beyond the level favoring a continued advance during the upcoming sessions.”