“¢ Overnight UK PM May’s announcement continues to underpin the GBP.
“¢ Weaker US bond yields weigh on USD and provide an additional boost.
“¢ The UK realized sales data remained supportive to the positive momentum.
The GBP/USD pair held on to its positive tone through the mid-European session, albeit has retreated few pips from fresh one week tops touched earlier today.
The UK PM Theresa May’s announcement on Tuesday, saying that she will personally lead the Brexit negotiations with the European Union assisted the pair to build on its overnight positive momentum.
The up-move was further supported by the latest UK CBI realized sales data that showed strong spending trend for the second straight month in July, albeit at a slower pace than in June.
This coupled with the prevalent US Dollar selling bias, undermined by weaker US Treasury bond yields, provided an additional boost and lifted the pair to an intraday high level of 1.3170.
With investors turning cautious ahead of a crucial trade meeting between the US President Donald Trump and European Commission President Jean-Claude Juncker, growing concerns over a no-deal/disorderly Brexit might now keep a lid on any strong follow-through.
Technical levels to watch
Any subsequent up-move is likely to confront stiff resistance near the 1.3200 handle, above which the momentum could get extended towards 1.3235-40 supply zone.
On the flip side, weakness below 1.3140-35 zone (session low) could drag the pair back towards the 1.3100 handle en-route the 1.3080-70 strong horizontal support.
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