GBP/USD refreshes session tops as USD selling remains unabated

The GBP/USD pair maintained its strong bid tone through early NA session and is currently placed at multi-day tops around 1.2765-70 band.

The pair traded with positive bias for the fifth consecutive session and extended last week's recovery move from sub-1.2600 level amid aggressive greenback selling pressure, with the key US Dollar Index slumping closer to yearly lows just below mid-96.00s.

The greenback selling interest remained unabated after IMF slashed its growth projections for the world's largest economy. IMF now anticipates the US economy to expand at 2.1% in 2017 and 2018, down from 2.3% and 2.5% forecasted in April, in wake of Trump administration’s inability to push through pro-growth economic policies and tax reforms. 

Meanwhile, the BoE's Financial Stability Report, published earlier on Tuesday, outlined risks stemming out of the Brexit negotiations but did little to stall the pair's appreciating move, with the prevalent bearish sentiment surrounding the USD acting as an exclusive driver of the pair's strong upsurge to 6-day highs, around 1.2780 level. 

   •  BoE caught between Brexit headwinds and rising inflation - HSBC

Today's US economic docket features the release of CB Consumer Confidence Index for June and would be looked upon for some immediate respite for the greenback bulls. Later during the day, speeches by Philadelphia Fed President Patrick Harker and the Fed Chair Janet Yellen would also influence the pair's movement through NY trading session.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes, "the 4 hours chart shows that the price has continued to find intraday support around a bullish 20 SMA, now at 1,2720, while the RSI indicator holds around 61, with limited upward strength, and the Momentum heads nowhere around its 100 level, indicating diminishing buying interest as the price near 1.2800. The 200 EMA in the  mentioned chart stands at 1.2790, providing an immediate dynamic resistance, with a clear extension and a candle opening beyond it required to confirm further gains ahead."