GBP/USD breaks higher above 1.3300, risk-on back in vogue?

The GBP/USD pair caught a sudden bid wave last hour, with the major finally breaking the overnight consolidative mode to the upside to regain 1.33 barrier.

GBP/USD sees a minor relief rally

Currently, GBP/USD jumps +0.58% to 1.3303, easing-off slightly from fresh session highs reached at 1.3327 few minutes ago. The cable appears to have finally got out of the woods as the bulls attempt a minor-recovery from Brexit-led massive sell-off to more than three decade lows of 1.3126.

The recovery in the GBP/USD pair can be largely attributed to a better risk tone seen across the financial markets as the Asian equities recover amid higher oil prices. Moreover, markets take this as a profit-taking opportunity as dust settles over the Brexit aftermath, while focus now shifts towards the US fundamentals, with the US final GDP in focus for today.

On Tuesday, the cable extended its post-Brexit rout and hit fresh 31-year troughs on UK rating s downgrade as well as on increased political and economic uncertainty spurred by Britain’s exit from the EU’s membership.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3350 (psychological levels), above which 1.3424 (daily R1) would be tested. On the flip side, support is seen at 1.3218 (Brexit vote low) below that at 1.3126 (31-year lows).