GBP/USD recovers swiftly from session low

The GBP/USD pair recovered all of its lost ground, closer to multi-week lows support, and has now turn mildly positive.

Currently trading around 1.2975-80 band, the pair still remained below 1.3000 psychological mark amid a fresh wave of risk-aversion sentiment, which seems to have gripped European markets again on Tuesday. Meanwhile, a mild greenback retracement from higher levels, as measured by the overall US Dollar Index, has also contributed to the major's recovery from session low. 

In absence of any fundamental development, the current pull-back could be attributed to short-covering as the pair showed reluctance to break through 1.2930-20 important support.

From the US economic calendar, focus would be on the release of CB Consumer Confidence index for some fresh impetus ahead of a speech from Federal Reserve Vice Chairman Stanley Fischer, which might provide some clues over the Fed's monetary policy outlook.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "Technically, the 4 hours charts shows that the price was unable to advance beyond a now bearish 20 SMA, while indicators have turned south within bearish territory, indicating that the risk remains towards the downside. Still, a downward acceleration through 1.2910 is required to confirm further slides, with 1.2870 as the next intraday bearish target. A daily close below the 1.2900 level, will fuel chances of a retest of the post-Brexit low, at 1.2793."

"Approaches to the 1.3000 region will continue to attract selling interest, even with disappointing US data, as selling at higher levels is the name of the game around the pair."