GBP/USD spikes and retreats, back around mid-1.2800s

• The GBP jumps after Labour confirmed to support early UK election.
• Further gains remained limited ahead of the final parliamentary vote.

The GBP/USD pair rallied around 60-pips and jumped to fresh session tops, around the 1.2875 region in the last hour, albeit lacked any strong follow-through.
 
The pair once again some resilience near the 1.2800 handle and witnessed an intraday turnaround after the UK opposition Labour party leader Jeremy Corbyn confirmed that it will support an early election in December.

Focus remains on UK politics

The British Pound got a strong boost in reaction to the latest UK development – intended to break the Brexit impasse –albeit election uncertainty held investors from placing aggressive bets and kept a lid on any strong positive move.
 
The pair retreated around 20-25 pips from the daily swing high but now seems to have stabilized above mid-1.2800s as investors look forward to the UK parliament vote on a one-line bill to change the date set in law for the election.
 
With the incoming Brexit/UK political headlines turning out to be an exclusive driver of the broader market sentiment surrounding the British Pound, the pair seemed rather unaffected by a subdued US Dollar price action.
 
Heading into this week's highly anticipated FOMC meeting, starting this Tuesday, a sharp intraday slide in the US Treasury bond yields held the USD bulls on the defensive and did little to contribute to the pair’s intraday momentum.

Technical levels to watch