GBP/USD eyeing a break through mid-1.2900s barrier

The GBP/USD pair faded a bullish spike and trimmed some of its early gains to fresh multi-day tops near mid-1.2900s. The pair, however, rebounded sharply from the 1.2900 neighborhood and is now headed back towards the top end of daily trading range. 

The pair's latest leg of retracement from higher levels lacked any fresh fundamental drivers and could be attributed to a modest greenback recovery. In fact, the key US Dollar Index bounced off fresh y-t-d lows, despite of a sharp retracement in the US treasury bond yields in wake of fading expectations for additional Fed rate-hike actions through 2017.

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Meanwhile, Monday's ICM UK election poll, showing Conservatives holding a 11-point lead against opponents Labour party in the upcoming UK general election on Thursday, continued extending some support the British Pound and helped the pair to defend the 1.2900 handle, at least for the time being. 

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In absence of any fresh macroeconomic data due for release on Tuesday, political headlines would remain an exclusive driver of the investors' sentiment surrounding the major.

Technical levels to watch

On a sustained break back below the 1.2900 handle, the pair is likely to accelerate the slide towards 1.2855-50 support area before eventually dropping to the 1.2800 mark en-route 50-day SMA support near 1.2770 area. 

On the flip side, 1.2950 area remains immediate strong hurdle, which if conquered has the potential to lift the pair back towards the key 1.30 psychological mark, with some intermediate resistance near 1.2970-75 area.