GBP/USD refreshes session tops, around 1.2370-75 region

• GBP/USD showed resilience at lower levels and attracted some dip-buying on Wednesday.
• A modest intraday USD pullback provided an additional boost amid improving risk sentiment.

The GBP/USD pair built on its steady intraday positive move and is currently placed near the top end of its daily trading range, around the 1.2365-70 region.

The pair quickly reversed an early European session dip to sub-1.2300 levels and moved back into the positive territory for the second consecutive session on Wednesday. The British pound continued showing some resilience at lower levels and seemed rather unaffected by broad-based US dollar strength through the early half of Wednesday’s trading action.

Meanwhile, the greenback struggled to capitalize on the momentum and triggered a part of its daily gains, which was seen as one of the key factors behind the pair’s latest leg of an uptick over the past hour or so. Bulls also shrugged off renewed concerns over the coronavirus pandemic, especially after the United Kingdom announced its highest daily death toll on Tuesday.

The latest developments comes on the back of the recent news that the UK Prime Minister Boris Johnson remains in intensive care. However, the fact that Johnson’s condition was last reported to be stable, along with some stability in the global financial markets extended some support to the major and remained supportive of the intraday uptick.

As investors await further updates on Johnson’s health condition, developments surrounding the coronavirus saga will drive the pair’s intraday momentum. Apart from this, Wednesday’s release of the FOMC meeting minutes might influence the USD price dynamics and provide some short-term trading impetus.

Technical levels to watch