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  • A subdued USD demand assisted GBP/USD to gain some follow-through traction on Tuesday.
  • The momentum seemed unaffected by discouraging coronavirus-related news from the UK.

The GBP/USD pair now seems to have entered a bullish consolidation phase and held steady near one-month tops, around mid-1.2500s.

The pair gained some follow-through traction for the second consecutive session on Tuesday – also marking its fifth day of a positive move in the previous six – and was supported by a subdued US dollar demand.

A turnaround in the global risk sentiment kept the USD bulls on the defensive against its British counterpart and turned out to be one of the key factors that assisted the pair to continue with its recent bullish momentum.

Apart from some USD weakness, Tuesday’s uptick could further be attributed to some technical buying above the key 1.2500 psychological mark, all against the backdrop of the overnight break through the 1.2480-85 supply zone.

However, the ever-increasing number of cases and related deaths in the UK continued fueling concerns about the economic fallout from the coronavirus pandemic, which seemed to be the only factor that might keep a lid on any further gains.

As investors wait for fresh signs that the virus outbreak may be peaking, the pair remains at the mercy of the USD price dynamics and the broader market risk sentiment amid absent relevant market-moving economic releases on Tuesday.

Technical levels to watch