GBP/USD surges through 1.34 handle to fresh session tops

   •  Finally seems to have conquered the 1.3400 handle.
   •  Surging US bond yields could cap additional gains. 

The GBP/USD pair caught some fresh bids in the past hour or so and jumped back above the 1.3400 handle, refreshing weekly tops in the last minute.

The pair found decent support just ahead of the 100 hourly SMA, around the 1.3385 level, and in absence of any dovish headlines coming out the BOE Governor Carney’s testimony on the Financial Stability Report before the Treasury Select Committee, traders seemed inclined to unwind some of their short positions. 

   •  BoE's Carney: Cooperation with UK is in best interests of EU and global financial systems
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The pair took along some short-term trading stops, which might have been triggered on a sustained move above the 1.3400 and hence, it would prudent to wait for a follow-through buying interest to see if the up-move is backed by any genuine buying or is merely a stop run. 

Meanwhile, a fresh leg of upsurge in the US Treasury bond yields, with 10-yrs rising to its highest level since March, provided some immediate respite for the US Dollar bulls and might now collaborate towards capping additional gains. 

Traders now look forward to the only scheduled release of existing home sales data from the US, which might help grab some short-term opportunities in a rather lackluster trading action on Wednesday. 

Technical levels to watch

A clear break through the 1.3425 level is likely to accelerate the up-move towards 1.3475 horizontal resistance en-route the key 1.3500 psychological mark. On the flip side, the 1.3385-80 region now becomes an immediate support to defend, which if broken might turn the pair vulnerable to head back towards testing 1.3320-15 support area.