GBP/USD refreshes session tops, gains further beyond 1.2900 handle amid notable USD supply

   •  Persistent USD selling helps build on momentum beyond 1.2900 handle.
   •  Larger than expected US trade deficit does little to ease USD bearish pressure.

The USD selling pressure remained unabated through the early North-American session and pushed the GBP/USD pair into positive territory for the third consecutive session.

Despite a goodish pickup in the US Treasury bond yields, the US Dollar kept losing ground on Tuesday and seen as one of the key factors assisting the pair to build on its positive momentum further beyond the 1.2900 handle.

Today's release of the US goods trade balance data, coming in to show a larger than expected deficit of $72.20 billion for July, exerted some additional downward pressure on the buck and provided an additional boost over the past hour or so.

The latest leg of up-move could further be attributed to some technical buying on a sustained move beyond above the 1.2900-1.2910 supply zone. It, however, remains to be seen if the positive momentum is backed by genuine buying or is solely led by short-covering amid looming Brexit uncertainties. 

Currently trading around the 1.2930 region, the pair has now moved within striking distance of last week's swing high. A follow-through buying, leading to a subsequent move beyond the 1.2945-50 region now seems to pave the way for an extension of the recent bullish momentum.

Technical outlook

Yohay Elam, FXStreet's own Analyst writes: “1.2940 capped the pair last week. Further above, 1.3000 is a round number and also had a role as support earlier in the year. 1.3045 held cable down in early August. 1.3080 served as support in July.”

“1.2840 provided support lately. It is followed by the round level of 1.2800 seen in mid-August. 1.2740 capped the pair earlier in the month,” he adds further.