GBP/USD fails to hold above 1.3400

GBP/USD is staging a mild comeback as sentiment improved across financial markets  on Tuesday, leading to recovery in equities and weighing on safe-havens.

Cable climbed to the 1.3420 zone at the beginning of the New York session but pound failed to picked up steam and retraced some of its gains. At time of writing, the pair is trading at 1.3335, still up 0.87% on the day.

Brexit worries far from over

Meanwhile in UK, political uncertainty is far from improving. Jeremy Corbyn, Labour Party and opposition leader, refused to resign even after losing a no-confidence vote in Parliament, while Prime Minister, David Cameron, traveled to Brussels for a tense summit over Brexit with EU leaders.

GBP/USD levels to consider

In terms of technical levels, next supports could be found at 1.3200 (psychological level/Jun 28 low), 1.3119 (31-year low, Jun 27), 1.3100 and then 1.3000 (psychological levels). On the other hand, resistances are seen at 1.3418 (Jun 28 high), 1.3482 (Jun 27 high), 1.3500 (psychological level) and not much until 1.3835 (Feb 29 2016 low).