GBP/USD refreshes session tops, bulls looking to build on momentum beyond 1.2900 handle

   “¢   Weaker risk sentiment provides a short-lived bump to the USD and prompts some selling.
   “¢   The downtick was bought into following Corbyn’s comments to back the second referendum.
   “¢   Market participants now eye second-tier US economic data for some trading opportunities.

The GBP/USD pair rallied over 70-pips from an intraday low level of 1.2732, with bulls now looking to build on the momentum further beyond 100-day SMA.

With investors looking past the latest Brexit/UK political developments, the pair extended its sideways consolidative price action and remained confined within a broader trading range. A modest US Dollar uptick, supported by softer risk sentiment, did exert some initial downward pressure, though was quickly bought into.

The pickup in the buying interest around the British Pound lacked any obvious catalyst but followed the UK Labour party leader Jeremy Corbyn’s comments, saying that they could back a second Brexit referendum if a no-deal scenario looks likely.

Meanwhile, the greenback also seemed struggling to preserve early gains and continues to be weighed down by dovish Fed expectations, which further collaborated to the pair’s goodish intraday spike to levels just above the 1.2900 handle.  

It, however, remains to be seen if bulls are able to sustain/build on the momentum, finally confirming a near-term bullish break-out, or the up-move once again gets sold into, reinforcing a heavy supply zone near the 1.2920-30 region, two-month tops set earlier this week.  

Moving ahead, today’s second-tier US economic data – initial weekly jobless claims and Philly Fed manufacturing index, will now be looked upon for short-term trading impetus during the early North-American session.

Technical levels to watch