- Tuesday’s upbeat UK services PMI helped regain positive traction.
- UK political uncertainty seemed to keep a lid on any runaway rally.
- A modest USD uptick exerts some pressure ahead of US ISM PMI.
The GBP/USD pair climbed to fresh session tops, further beyond the 1.2900 handle in the last hour, albeit quickly retreated few pips thereafter.
The British Pound remained well supported by the fact that the incoming opinion polls have been indicating a majority for the UK Prime Minister Boris Johnson’s Conservative Party at the upcoming election in December.
Upside remains capped
The uptick got an additional boost following the release of stronger-than-expected UK services PMI, which unexpected recovered back into expansion territory and came in at 50.0 for October as compared to 49.7 expected.
The pair jumped to an intraday high level of 1.2918 in the last hour, albeit lacked any strong follow-through as investors refrained from placing fresh bets amid the inherent uncertainty over the actual outcome of the UK election.
This coupled with a modest US Dollar uptick, supported by the ongoing upsurge in the US Treasury bond yields and renewed optimism over a possible US-China trade deal, further collaborated towards capping gains.
Moving ahead, Tuesday’s economic docket also highlights the release of US ISM non-manufacturing PMI, which might influence the USD price dynamics and produce some meaningful trading opportunities.
Technical levels to watch
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