- Falling US bond yields weighed on the USD and helped regain traction.
- The latest UK political headlines provided an additional boost to the GBP.
- A sustained move beyond the 1.2300 handle needed to impress bulls.
The GBP/USD pair built on its goodish intraday up-move and spiked to fresh monthly tops - levels just above the 1.2300 round figure mark in the last hour.
As investors tempered their optimism about the chances for a quick resolution to the US-China trade tensions, a fresh leg of a downfall in the US Treasury bond yields undermined the US Dollar demand and helped the pair to catch some fresh bids on Tuesday.
Brexit optimism helped gain traction
The pair traded with a positive bias for the third session in the previous four and the up-move was further supported by the fact that the UK opposition Labour party may be looking towards passing a law to stop a no-deal outcome instead of pursuing the course of a no-confidence motion.
This coupled with possibilities of some short-term trading stops being triggered on a sustained move beyond the 1.2270-75 region seemed to have further collaborated to the pair's latest leg of a sudden uptick over the past hour or so, though bulls lacked any strong conviction beyond the 1.2300 handle.
Hence, it will be prudent to wait for a strong follow-through buying before traders start positioning for any further near-term appreciating move towards reclaiming the 1.2400 round figure mark with some intermediate resistance near the 1.2360-65 region.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Gold clinches fresh record highs, eyes $3,300 ahead of US data, Powell
Gold price resumes its record rally on Wednesday, with eyes on $3,300. China’s annual Q1 GDP beats expectations but US tariff uncertainty looms, aiding Gold price upside. Gold price is back in the overbought zone on the daily chart; US Retail Sales and Powell are eyed.
AUD/USD holds gains near 0.6350 after Chinese GDP data
AUD/USD consolidates gains near 0.6350 in Asian trading on Wednesday. The pair stays supported by the upbeat Chinese annual GDP, Retail Sales and Industrial Production data. However, the further upside appears capped by US-China trade woes ahead of US data and Powell.
USD/JPY stays pressured toward 142.50 amid renewed US Dollar selling
USD/JPY turns south toward 142.50 and remains close to a multi-month low touched last week. Tariff-driven uncertainty continued to weigh on the US Dollar. Adding to this hope for a US-Japan trade deal, the divergent BoJ-Fed policy expectations and a softer risk tone underpin the safe-haven Japanese Yen.
UK CPI set for a slight decline in March, reinforcing BoE easing expectations
The United Kingdom’s Office for National Statistics will publish the March CPI data on Wednesday. The annual UK headline inflation is set to cool in March, while core CPI is seen to remain unchanged. The UK CPI data could inject volatility around the Pound Sterling amid a cautious BoE.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.