- GBP/USD attracted some dip-buying near the 1.3700 mark, though lacked any follow-through.
- A modest USD strength held bulls from placing fresh bets and capped the upside for the major.
- Investors now look forward to the US Durable Goods Orders for some trading opportunities.
The GBP/USD pair rallied nearly 40 pips during the early European session and shot to fresh daily tops, albeit lacked any follow-through. The pair now seems to have stabilized in the neutral territory and was last seen trading around the 1.3725-30 region, nearly unchanged for the day.
The pair attracted some dip-buying near the 1.3700 mark on Wednesday and is now looking to build on this week's strong recovery move from the vicinity of one-month lows. That said, a modest US dollar strength held bulls from placing fresh bets and kept a lid on any meaningful upside for the GBP/USD pair, at least for now.
Some follow-through uptick in the US Treasury bond yields assisted the USD to move away from one-week lows touched in the previous day. In fact, the yield on the benchmark 10-year US government bond inched back closer to the 1.30% threshold amid expectations that the Fed might still begin rolling back its pandemic-era stimulus in 2021.
That said, a generally positive tone around the equity markets capped gains for the safe-haven greenback and extended some support to the GBP/USD pair. Investors also seemed reluctant to place aggressive bets, rather preferred to wait on the sidelines ahead of the Fed Chair Jerome Powell's speech at the Jackson Hole Symposium.
In the meantime, traders might take cues from Wednesday's release of the US Durable Goods Orders, due later during the early North American session. This, along with the US bond yields and the broader market risk sentiment, might influence the USD price dynamics and produce some short-term trading opportunities around the GBP/USD pair.