GBP/USD corrects from near two-week tops, comes down below mid-1.2900s

Having touched near two-week high level around 1.2980 region, the GBP/USD pair came under some selling pressure and eroded part of previous session's up-move.

Spot lost its upside momentum just ahead of the key 1.30 psychological mark amid growing nervousness heading into the crucial UK general election. Adding to this, a modest up-tick in the US treasury bond yields, which underpinned the US Dollar demand, also prompted traders to take some profits off the table from closer to yearly tops.

The pair is currently placed at session lows near 1.2935 region as investors now look forward to the ECB monetary policy decision for some rub-off effect on the British Pound, eventually providing some impetus to the major. 

Also in focus would be former FBI Director James Comey Senate testimony, later during the day, which would influence sentiment surrounding the greenback and contribute towards providing some near-term direction to the pair.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "From a technical point of view, the pair retains a positive tone, albeit in the short term the upward momentum keeps fading, as the price retreats from a daily high of 1.2977. In the 4 hours chart, the price remains far above a bullish 20 SMA, whilst technical indicators head south within positive territory."

"The levels to watch today are like follows: beyond 1.3000, the next resistance comes at 1.3047, May's high, en route to the 1.3090/1.3110 region. Below 1.2900 on the other hand, the pair has scope to extend its slide down to 1.2840" she added.