GBP/USD edges up to session tops, closer to mid-1.2900s post-UK macro data

• GBP/USD gains some positive traction following Tuesday’s mixed US macro data.
• Fears of a no-deal Brexit, sustained USD buying might keep a lid on any strong gains.

The GBP/USD pair quickly reversed an early European session dip to sub-1.2900 level and refreshed session tops post-UK macro releases.

The British pound gained some positive traction and assisted the pair to add to the previous session's modest gains following the release of upbeat UK monthly GDP print, showing that the economy recorded a growth of 0.3% in December as compared to 0.2% expected.

Meanwhile, the economic growth for the fourth quarter of 2019 remained flat and matched consensus estimates. The mixed readings were further accompanied by weaker than industrial and manufacturing figures, which largely offset better-than-expected UK trade balance data.

This comes on the back of market concerns that Britain might crash out of the European Union at the end of the transition period later this year. This coupled with sustained buying interest surrounding the US dollar might keep a lid on any strong recovery for the major.

Moving ahead, market participants now look forward to the Fed Chair Jerome Powell's semiannual testimony before the Congress, which might influence the USD price dynamics and produce some meaningful trading opportunities later during the US session.

Technical levels to watch