GBP/USD spikes to fresh session tops, 1.3300 mark back on sight

Haresh Menghani FXStreet

• Sliding US bond yields/trade tensions prompt some fresh USD selling.
• Last week’s hawkish BoE twist continue to underpin the British Pound.
• Brexit uncertainties might contribute towards capping further gains.

The GBP/USD pair quickly recovered an early European session dip to 1.3220 area and spiked to fresh session tops in the last hour.

The latest leg of sharp uptick over the past couple of hours could be attributed to some renewed greenback selling bias, dragging the key US Dollar Index to the 94.00 neighborhood.

Against the backdrop of escalating trade tensions between the US and other major economies, sliding US Treasury bond yields kept the USD bulls on the defensive and was seen as one of the key factors driving the pair higher.

The pair has now turned positive for the third consecutive session, with last week's hawkish BoE twist underpinning the British Pound and supporting the pair's goodish rebound of over 60-pips from session lows.

It, however, remains to be seen if the pair is able to move back/sustain above the 1.3300 handle amid prolonged Brexit uncertainties and amid silent macroeconomic docket.

Technical levels to watch

Momentum beyond the 1.3300 handle is likely to confront resistance near the 1.3315 area, above which the pair is likely to target 1.3370-75 intermediate hurdle en-route the 1.3400 round figure mark.

On the flip side, the 1.3250-45 region now seems to protect the immediate downside, which if broken could accelerate the fall towards the 1.3200 handle en-route its next major support near the 1.3165 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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