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GBP/USD eases from tops, still well bid near 1.2300 mark

  • GBP/USD once again attracted some dip-buying ahead of the 1.2200 round-figure mark.
  • Surging US bond yields extended some support to the USD and capped any further gains.

The buying interest around the British pound picked up pace during the early European session and lifted the GBP/USD pair back above the 1.2300 round-figure mark.

As investors digested news of the UK Prime Minister Boris Johnson’s hospitalization, the pair once again managed to attract some dip-buying and staged a goodish bounce from the vicinity of the 1.2200 round-figure mark.

The latest comments by the UK Housing Secretary Robert Jenrick, saying that he heard that Johnson is doing well, helped soothe fears of any impending political complications and provided a goodish lift to the British pound.

Meanwhile, the GBP bulls seemed rather unaffected by the downward revision of the UK Construction PMI, which recorded the steeped decline since April 2009 and illustrated the extent of economic fallout from the coronavirus pandemic.

On the other hand, the US dollar struggled to gains any meaningful traction amid a solid recovery in the global risk sentiment. However, surging US Treasury bond yields extended some support to the USD and might cap any further gains for the major.

Hence, it will be prudent to wait for some strong follow-through buying before traders start positioning for an extension of the intraday positive momentum amid absent relevant market moving economic releases from the US.

Technical levels to watch

 

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