GBP/USD pares early losses, defends 1.29 handle for the time being

The GBP/USD pair managed to reverse majority of its early losses and is now headed towards the top end of daily trading range.

After an initial retracement, in wake of renewed concerns over the 'hard Brexit' scenario, the pair attracted some fresh buying interest near the 1.2900 handle and inched back closer to last week's multi-month tops near 1.2965 region.

The pair's intraday recovery was not backed by any fresh fundamental triggers and could be solely attributed to a modest US Dollar pull-back from highs, despite of rising US treasury bond yields. 

As Valeria Bednarik, Chief Analyst at FXStreet writes, "the fact that buying interest quickly jumped back in suggest that the dominant bullish trend remains firm in place."

On the economic data front, the release of ISM Manufacturing PMI, Core PCE Price Index and Personal Income/Spending data are due for release during early NA session. In the meantime, the speech by the US Treasury Secretary Steve Mnuchin will also be looked upon for some fresh impetus. 

Technical levels to watch

A follow through momentum beyond mid-1.2900s is likely to confront resistance at multi-month highs near 1.2965 level, above which the pair seems all set to aim towards conquering the 1.30 psychological mark and head towards testing its next major hurdle near the 1.3035-45 region. 

On the flip side, weakness below the 1.2900 handle could get extended towards 1.2870 intermediate support before the pair eventually drops to 50-day SMA support near 1.2840-35 region ahead of 1.2800 round figure mark.