May 11, 2021 10:46 GMTFXStreet News
GBP/USD was seen consolidating the overnight strong gains to the highest level since late February.
An uptick in the US bond yields, weaker risk tone underpinned the safe-haven USD and capped gains.
The downside seems limited amid an upbeat UK economic outlook and ahead of BoE Governor Bailey.
The GBP/USD pair extended its consolidative price move through the first half of the European session and remained confined in a range just above the 1.4100 mark.
A modest US dollar strength failed to assist the pair to build on the previous day’s strong positive move to the highest level since February 25, led by the outcome of the Scottish election. It is worth mentioning that Nicola Sturgeon’s Scottish National Party (SNP) recorded its fourth consecutive victory but fell short of securing an outright majority. The result pushed back the risk of an imminent Scottish referendum on independence from the UK, which, in turn, prompted some aggressive short-covering around the British pound.