GBP/USD spikes to fresh weekly tops near mid-1.2900s

The GBP/USD pair finally broke out of its Asian session consolidation phase and spiked to a fresh weekly high near mid-1.2900s, albeit retreated few pips thereafter. 

The prevalent US Dollar selling bias, in wake of perceived dovish testimony by the Fed Chair Janet Yellen, helped the major to build on previous session's surprising stronger UK labor market report-led strong recovery move from two-week lows.

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Meanwhile, possibilities of some stops being triggered on a sustained move beyond the 1.2900-10 hurdle might have also collaborated to the pair's sharp spike during the early European session. 

It, however, remains to be seen if the pair is able to build on the up-move or faces some fresh supply at higher levels amid concerns over the impending Brexit negotiations. 

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Traders would now take clues from BOE's Credit Conditions Survey report, due in a short while from now, ahead of the US economic data and Fedspeaks. 

Technical levels to watch

A follow-through buying interest beyond mid-1.2900s, the pair is likely to make a fresh attempt to reclaim the key 1.30 psychological mark before darting back towards 1.3030-50 strong hurdle.

On the flip side, 1.2910-1.2900 area now becomes an immediate support to defend, below which the pair could slide back to 1.2840 horizontal support.