GBP/USD rallies to fresh session tops, around mid-1.3200s but lacks follow-through
• News of a possible MV3 on Tuesday triggers a fresh leg of an upsurge on Monday.
• Renewed USD selling bias provides an additional boost and remained supportive.
The GBP/USD pair rallied around 80-85 pips and refreshed session tops, around mid-1.3200s in the last hour, albeit lacked any strong follow-through.
Having touched a session low level of 1.3160, the pair witnessed a sudden intraday turnaround in reaction to news that the UK PM Theresa May will push ahead with MV3 on Tuesday, though was immediately denied by official sources and thus, kept a lid on any further up-move.
Meanwhile, speculations that May might still struggle to pass the relevant legislation through the parliament further collaborated towards capping the intraday positive move. Hence, the key focus will be on Tuesday's possible vote and only after that she will consider indicative votes.
With the incoming Brexit headlines turning out to be an exclusive driver of the sentiment surrounding the British Pound, a follow-through up-move, towards reclaiming the 1.3300 handle, now looks a distinct possibility amid some renewed US Dollar selling bias and absent relevant market moving economic releases.
Technical levels to watch