GBP/USD jumps to fresh session tops, closer to 1.2900 handle

   •  A modest USD pull-back helps ease bearish pressure and bounce off lows.
   •  Carney’s says nothing notable on interest rates or change in the policy outlook.
   •  Traders now look forward to Powell’s speech for short-term opportunities.

The GBP/USD pair reversed an early European session dip to fresh three-week lows and is currently placed at fresh session tops, around the 1.2880-85 region.

A modest US Dollar profit-taking slide from the highest level since December was seen as one of the key triggers behind the pair’s initial leg of bounce from an intraday low level of 1.2834.

Despite news of the deal to avert a fresh government shutdown and optimism over a possible US-China trade deal, the greenback struggled to gain traction and capitalize on the recent upsurge. 

The subsequent up-move lacked any obvious catalyst but followed the BoE Governor Mark Carney’s comments, saying nothing notable on interest rates or signalling a change in the monetary policy outlook.

Hence, it would prudent to wait for a strong follow-through up-move to see if the uptick is backed by any genuine buying or is solely led by some short-covering move amid persistent Brexit uncertainties.

Moving ahead, speeches by several FOMC officials, including the Fed Chair Jerome Powell, will now be looked upon for some impetus but key focus will remain on the Brexit parliamentary debate on Thursday, Feb. 14. 

Technical levels to watch