GBP/USD surges through 1.29 handle and beyond on Carney

The British Pound gained some fresh traction during early NA session, lifting the GBP/USD pair surging through the 1.2900 handle to its highest level in nearly three-weeks.

The pair caught some fresh bids after BOE Governor Mark Carney, while talking a panel discussion at the European Central Bank Forum, was noted saying that the central bank's tolerance for higher inflation was limited and there is a need to remove some stimulus as spare capacity erodes.

Hints of stimulus withdrawal by Carney lifted the British Pound across the board and helped the pair to build on its strong recovery move from sub-1.2600 level touched in the previous week.

Meanwhile, possibilities of some stops being triggered on a decisive break through mid-1.2800s might have also collaborated to the pair's sharp upsurge over the past few minutes, closer to mid-1.2900s.

Technical levels to watch

Immediate resistance is pegged near 1.2945-50 region, above which a fresh bout of short-covering has the potential to lift the pair back towards the key 1.30 psychological mark.

Conversely, any retracement from higher levels now seems to find immediate support near the 1.2900 handle. Any additional weakness below the said handle would now be looked as buying opportunity and hence, should limit the fall near mid-1.2800s.