GBP/USD surrenders early gains, turns flat amid a modest USD rebound

   •  Brexit uncertainties keep a lid on any runaway rally for the GBP.
   •  The USD stalls dovish Fed-led downfall and exerts some pressure.

The GBP/USD pair quickly retreated around 30-35 pips from an intraday high level of 1.3157 and is currently placed at the lower end of its daily trading range. 

Reemerging Brexit uncertainties, especially after the UK parliament rejected a host of amendments on the Brexit Plan B, including an amendment proposing an extension of Article 50 if no agreement was reached by late Feb, kept a lid on any runaway rally for the British Pound.

The pair struggled to build on the overnight goodish rebound from the very important 200-day SMA and faced some resistance near the 1.3150-60 region. With investors looking past dovish Fed signals, the US Dollar recovered early lost ground and was seen exerting some downward pressure.

The downtick, however, has been limited so far, with bulls managing to hold the pair above the 1.3100 handle amid absent relevant market moving UK economic data or fresh Brexit headlines. The US economic docket also features a couple of second-tier data and seems unlikely to provide any meaningful impetus.

Moving ahead, Friday's keenly watched US monthly jobs report (NFP) is likely to have a lasting effect on the near-term USD price dynamics and might produce some trading opportunities. Meanwhile, the key focus will remain on Brexit developments, which remains a key driver of the sentiment surrounding the Sterling.

Technical levels to watch

A follow-through weakness below the 1.3100 handle is likely to accelerate the fall back towards 1.3060-50 support area (200-DMA), which if broken might drag the pair further towards the key 1.30 psychological mark. On the flip side, the 1.3150-60 region might continue to act as an immediate resistance, above which the pair is likely to make a fresh attempt towards reclaiming the 1.3200 handle.