GBP/USD jumps back above 1.41 handle amid renewed USD weakness

   •  USD fails to preserve overnight recovery gains.
   •  Retracing US bond yields offset UK political concerns.
   •  US data/Carney’s testimony eyed for fresh impetus.

The GBP/USD pair quickly reversed an early European session dip to one-week lows and is now looking to build on its momentum back above the 1.4100 handle.

The US Dollar started the day on front-foot and built on its overnight recovery move from over 3-year through, dragging the pair to an intraday low level of 1.3980. A minor USD rebound turned out to be short-lived, amid a sharp retracement in the US Treasury bond yields and helped the pair to catch some strong bids at lower levels.

Meanwhile, the market now seems to have largely digested the latest UK political news, wherein Theresa May is facing renewed pressure to quit as PM, with the reemergence of the USD bearish pressure turning out to be an exclusive driver of the pair's momentum since the early European session. 

Traders now look forward to the release of CB's US Consumer Confidence index for some short-term trading impetus. Later during the NY trading session, the BOE Governor Mark Carney's testimony before the House of Lords Economic Affairs Committee might also infuse some volatility across GBP crosses. 

Technical levels to watch

Immediate resistance is now pegged near the 1.4130-35 region, above which the pair is likely to accelerate the up-move towards reclaiming the 1.4200 handle before eventually darting towards 1.4235-40 supply zone. 

On the flip side, the 1.4070 area now becomes an immediate support to defend, which if broken could drag the pair back towards the key 1.40 psychological mark en-route its next major support near the 1.3940-35 region.