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- During the Asian session on Tuesday, GBP/USD is trading with a mild positive bias
- US bond yields are suffering from Fed rate cut bets, causing the USD to lose ground
- A softer risk tone is helping the safe-haven buck, limiting losses and keeping the pair in check
GBP/USD is edging higher in the Asian session on Tuesday and is looking to build on the overnight bounce from the 1.2600 mark. Spot prices are currently hovering around the 1.2630-1.2635 region and are drawing support from various factors.
The US Dollar (USD) is struggling to capitalize on the previous day’s strong move, triggering a fresh leg down in US Treasury bond yields and keeping the USD bulls on the defensive. This is acting as a tailwind for the GBP/USD pair.
The British Pound (GBP) is underpinned by diminishing odds for an early rate cut by the Bank of England (BoE), which is contributing to the GBP/USD pair’s uptick.
Despite a softer risk tone lending some support to the safe-haven Greenback, the GBP/USD pair’s path of least resistance seems to be to the upside.
Nevertheless, it will still be prudent to wait for a sustained move beyond the 1.2725-1.2730 supply zone before positioning for any further appreciating move.
Technical levels to watch
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