GBP/USD climbs to session tops, eyeing a move beyond 1.2600 mark
- The emergence of some fresh USD selling helped GBP/USD to bounce off session lows.
- A modest rebound in the global risk sentiment further undermined the safe-haven USD.
The GBP/USD pair edged higher through the early European session and refreshed daily tops in the last hour, with bulls now eyeing to reclaim the 1.2600 mark.
The pair once again managed to find decent support ahead of the key 1.2500 psychological mark and moved back into the positive territory amid the emergence of some fresh US dollar selling. The continuous surge in coronavirus infections in the US fueled concerns that the economic recovery will take much longer than initially expected and kept the USD bulls on the defensive.
The greenback was also pressured by a weaker tone surrounding the US Treasury bond yields. This coupled with a slight improvement in the global risk sentiment, as depicted by a modest rebound in the equity markets, further undermined the safe-haven USD. This, in turn, remained supportive of the GBP/USD pair's intraday positive of around 75 pips from daily swing lows.
Despite the move up, the pair remains well within a broader trading range held over the past one week or so. This makes it prudent to wait for some strong follow-through buying before positioning for any further appreciating move. In the absence of any relevant market-moving economic releases, either from the UK or the US, the GBP/USD bulls remain at the mercy of the USD price dynamics.
Technical levels to watch