GBP/USD eases from tops, struggles to find acceptance beyond 1.2200 handle

• Absent negative Brexit headlines prompted some short-covering move.
• A subdued USD price action remained supportive of the up-move.
• Persistent fears of a no-deal Brexit might cap any strong recovery.

 The GBP/USD pair climbed to fresh multi-day tops in the last hour, with bulls still awaiting a strong follow-through buying beyond the 1.2200 round figure mark.
 
Having defended the 1.2100 handle in the previous session, the pair managed to regain some traction on Tuesday in absence of any negative Brexit-related headlines and the uptick was further supported by a subdued US Dollar price action.
 
Despite some initial signs of stability in the global financial markets, which helped the US Treasury bond yields to stage a goodish bounce from multi-year lows, the USD bulls held on the defensive and remained supportive of the intraday uptick.
 
The up-move, however, seemed to lack any strong bullish conviction as investors still seemed reluctant to place any aggressive bets amid persistent uncertainty surrounding Britain's exit from the European Union by the new extended deadline - Oct. 31.
 
In the latest Brexit development, the European Commission said on Tuesday that they are open to talk if the UK wants to clarify its position on Brexit and is prepared for no-deal Brexit (not the preferred option), albeit did little to provide any meaningful impetus.
 
In absence of any major market-moving economic releases, either from the UK or the US, market participants look forward to scheduled speeches FOMC members, which might influence the USD price dynamics and produce some short-term trading opportunities.
 
Meanwhile, the incoming Brexit-related headlines/developments might continue to act as an exclusive driver of the broader market sentiment surrounding the British Pound and help determine the pair's next leg of a directional move.

Technical levels to watch