GBP/USD spikes and retreats, back below 1.2900 handle
- The intraday dip attracted some dip-buying near the 1.2840 area.
- Reluctant to place any aggressive bets capped any strong gains.
- The focus remains on Saturday's UK Parliament session on Brexit.
The GBP/USD pair picked up some pace in the last hour and jumped to fresh session tops, around the 1.2920 region, albeit quickly retreated few pips thereafter.
Following the previous session's rather volatile price swings, led by a flurry of Brexit-related headlines, the pair met with some supply and witnessed a modest pullback during the early part of Friday's trading action.
Traders turn cautious special UK Parliament session
Speculations that the UK Prime Minister Boris Johnson's Brexit deal will be rejected in the Parliament turned out to be one of the key factors that weighed on the British Pound and exerted some pressure on the major.
It is worth reporting that the DUP has formally stated it will vote against Johnson’s new Brexit deal while opposition leader Jeremy Corbyn had termed the deal as worse than previously negotiated by former PM Theresa May.
Meanwhile, the intraday downtick lacked any strong follow-through selling, rather was quickly bought into near the 1.2840 region and seemed rather unaffected by incoming Brexit-related comments from the UK political leaders.
The pair climbed back above the 1.2900 round-figure mark, though investors seemed reluctant to place any aggressive bets ahead of Saturday's special UK Parliament session on Brexit and kept a lid on any further gains.
It will now be interesting to see if the pair continues to find some dip-buying interest or traders opt to unwind their bullish positions, which might lead to a goodish intraday pullback ahead of the major event risk.
Technical levels to watch