GBP/USD clings to gains near multi-week tops, just below mid-1.2300s ahead of US data

• The pair added to its recent strong gains amid receding fears of a no-deal Brexit.
• A subdued USD price action provided an additional boost and remained supportive.
• Traders now eye US ADP report and ISM non-manufacturing for a fresh impetus.

The GBP/USD pair maintained its strong bid tone through the mid-European session and is currently placed at five-week tops, around mid-1.2300s.

Brexit optimism continues to underpin GBP

The pair built on this week’s solid rebound from nearly three-year lows and continued gaining strong positive traction for the third consecutive session on Thursday amid receding fears of a no-deal Brexit.
 
It is worth reporting that the UK Parliament on Wednesday passed legislation that would require PM Johnson to ask the European Union (EU) to extend the Brexit deadline for three months beyond October 31.
 
The bullish momentum got an additional boost after Johnson’s brother Jo resigned from the government and gave another blow to the PM, who has no majority and lost three critical votes this week in the Parliament.
 
Adding to this, a subdued price action surrounding the US Dollar, despite a strong intraday upsurge in the US Treasury bond yields, remained supportive of the strong up-move to the highest level since late-July.
 
Bulls took some breather near mid-1.2300s and look forward to the US economic docket – featuring the releases of ADP report and ISM non-manufacturing PMI – for some short-term trading impetus.

Technical levels to watch