GBP/USD bulls in full control, holds comfortably above 1.35 handle

   •  Sliding US bond yields add to USD woes.
   •  Now seems poised to extend the bullish move.

The GBP/USD pair maintained its strong bid tone through the early NA session and was now seen building on its strength beyond the key 1.3500 psychological mark.

After a brief mid-European session consolidation phase, the pair resumed with its prior appreciating move and refreshed multi-week tops in the last hour of trading. The up-move, for the fourth consecutive session, lacked any obvious catalyst and was solely led by a fresh wave of US Dollar selling pressure. 

A mildly softer tone around the US Treasury bond yields intensified the ongoing USD downfall and provided an additional boost to the pair's bullish momentum, taking along some stops placed near the 1.3500 handle. 

From a technical perspective, the pair now seems to have broken through a short-term descending trend-line hurdle and hence, a follow-through momentum, led by some technical buying amid pre-holiday thin liquidity, now looks a distinct possibility. 

Technical outlook

Mario Blascak, European Chief Analyst at FXStreet writes: "The uptrend on GBP/USD is underlined by the number of days of relative price stability that has brought all the technical oscillators to the neutral zone. With Momentum indicator near neutral zone pointing upwards the potential extension of the uptrend is possible. Breaking above $1.3500 opens the way for attacking December 8 high of $1.3520 before attacking December 1 high of $1.3550.  The Slow Stochastics moved into the Overbought territory but needs lower price action for bearish crossover."