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   “¢   A combination of supporting factors triggered a strong positive momentum.  
   “¢   Upbeat US economic data/surging US bond yields helped ease USD bearish pressure.

The GBP/USD pair stalled its strong intraday bullish momentum just ahead of the 1.3300 handle and quickly retreated around 20-pips in the last hour.

A combination of supporting factors – collapsing US Dollar, upbeat UK retail sales data and Brexit optimism, assisted the pair to catch some strong bids and confirm a fresh bullish break through 100-day SMA.  

With today’s strong up-move, the pair had rallied over 200-pips from overnight swing low level of 1.3096, touched in the reaction of a report that the UK PM May will reject the EU’s new proposal on the Irish border.  

Bulls, however, took some breather following the release of better-than-expected US economic data – Philly Fed manufacturing index and initial weekly jobless claims.  

This coupled with resurgent US Treasury bond yields helped ease the US Dollar bearish pressure, at least of the time being, and halted the pair’s relentless rally to the highest level since July 10.

Technical levels to watch

On a sustained move beyond the 1.3300 handle, the pair is likely to aim towards testing the 1.3260-70 supply zone before eventually darting towards the 1.3400 round figure mark.  

On the flip side, the 1.3235 level now seems to protect the immediate downside and is followed by the 1.3200 handle, below which the pair could slide back towards 100-DMA, around the 1.3160 region.