🔴 GBP/USD received a much-needed reprieve on Wednesday with bond-market help, and if the U.S. 30-year Treasury yields' rejection of 5% and 10-year notes falling short of 4.9%, the key now is whether these reversals hold, which would allow greater room for a sterling rebound.
While bond market moves will continue to dictate much of the action, the pound has also been underpinned by a sizeable upward revision to the flash services PMI report. The final reading showed an upgrade to 49.3 from 47.2, albeit still in contraction territory.
A key day reversal in GBP/USD is an encouraging sign for dip-buyers. However, should the move be considered more than a countertrend rally, a close above 1.2270-1.2300 would likely be needed.