GBP/USD spikes to fresh 2-week tops, now eyeing 1.33 mark

Haresh Menghani FXStreet

• Recovers around 90-pips from early Asian session lows.
• Renewed USD selling bias helps refresh 2-week tops.

The GBP/USD pair reversed an early dip to sub-1.3200 level and recovered nearly 90-pips from session lows.

Currently trading around the 1.3270 region, the pair turned positive for the fifth consecutive session and clocked over 2-week tops in the last hour, recovering all of its losses led by dovish BoE rate hike move in early November.

With investors looking past the latest German political uncertainty, a goodish recovery in the EUR/USD major, coupled with sliding US Treasury bond yields prompted fresh US Dollar selling and is turning out to be an exclusive driver of the pair's sharp upsurge over the past couple of hours.

It would now be interesting to see if bulls are able to maintain their dominant position or the pair runs through some fresh offers at higher level amid a combination of diverging factors ranging from persistent Brexit uncertainty and concerns over the long-awaited US tax cut legislation.

Technical levels to watch

Bulls would now be eyeing for a break through the 1.3300 handle, above which the pair is likely to aim towards testing Oct. swing highs resistance near the 1.3335-40 region.

On the flip side, 1.3240-30 zone now becomes an immediate support to defend, which if broken would turn the pair vulnerable to break back below the 1.3200 handle and head towards testing 1.3170-65 support area.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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