GBP/USD retreats from one-week highs, back below mid-1.2700s

The GBP/USD pair stalled its recovery move from last week's 2-month lows and retreated around 35-pips from one week high near 1.2760 region. 

The latest leg of slide over past one hour could be attributed to a sharp up-tick in the US Treasury bond yields, which underpinned the US Dollar demand and dragged the pair to session lows around 1.2725 level. 

The pair, however, has managed to hold in positive territory for the fourth consecutive session amid optimism over a possible deal between UK Tories and DUP Party to allow PM Theresa May to maintain a minority government. 

Adding to this, the UK BBA mortgage approvals, at 40.35K vs 40.3K expected remained supportive of a mildly positive sentiment surrounding the major. 

It, however, remains to be seen if the pair is able to build on the recent recovery move or runs through some fresh offers at higher levels in wake of uncertainty surrounding Brexit negotiations.

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Today’s release of durable goods order would now be looked upon for some fresh impetus later during the NA session. 

Technical levels to watch

From current levels, retracement back below 1.2720 level, leading to a subsequent break below the 1.2700 mark, would turn the pair vulnerable to head back towards testing 1.2635-25 support (100-day SMA region). 

On the upside, any up-move is likely to confront strong resistance near 1.2775-85 region, above which the pair is likely to move past the 1.2800 handle towards its next horizontal resistance near 1.2815 level.