GBP/USD: Bulls gather pace, prints fresh 2-month highs

After a brief phase of consolidation in the late-Asian session, the GBP/USD pair finally regained momentum and broke higher, now receding slightly from fresh two-month highs at 1.2763, still up +0.19% so far.

The cable remains strongly bid and extends its bullish momentum for the sixth straight session, as the US dollar continues to reverse its broad rally to fresh multi-year tops, in a pullback to Trump-win induced upsurge.

While there seems to be no major catalyst behind the latest leg higher except for a retreat in the US treasury yields, which boost the demand for the GPB as an alternative higher-yielding asset.

In absence of fresh economic data from the UK calendar, the major will get influenced by the broader market sentiment ahead of the US trade and factory orders due later in the American session.

GBP/USD Levels to consider            

In terms of technical levels, upside barriers are lined up at 1.2765 (2-month top), 1.2779 (daily R1) and 1.2800 (round number). While supports are seen at 1.2694 (5-DMA) and 1.2623 (previous low) and below that at 1.2583 (10-DMA).