GBP/USD: Intraday bullish spike falters ahead of 1.3100 handle

   “¢   Quickly reverses a dip and rallies over 50-pips in the last hour.
   “¢   Brexit uncertainties/modest USD uptick keeps a lid on further gains.

The GBP/USD pair reversed an early European session dip to a session low level of 1.3026 and rallied over 50-pips in the last hour, albeit quickly retreated few pips thereafter.

The latest leg of a sudden spike lacked any obvious catalyst, rather followed the UK Finance Minister Phillip Hammond’s comments that possibility of a no-deal Brexit might lead MPs to reconsider backing the PM May’s amended Brexit deal.

Bulls, however, once again failed to capitalize on the positive momentum and failed ahead of the 1.3100 handle after Hammond denied prospects of an extension of the Article 50, terming the talks as speculation, and the news that  two senior Tories were ready to resign if May fails to change Brexit direction.

This coupled with a modest US Dollar uptick, supported by reviving hopes for further Fed rate hike(s) in 2019, further collaborated towards keeping a lid on any runaway rally, at least for the time being.

With the incoming Brexit headlines turning out to be an exclusive driver of the sentiment surrounding the British Pound, today’s US economic data seems unlikely to be a game changer as the focus remains on the UK Parliament vote on Brexit deal on Feb. 27.

Today’s US economic docket features the key release of durable goods orders, which along with the release of Philly Fed manufacturing index might provide some impetus and produce short-term trading opportunities later during the early North-American session.

Technical levels to watch