GBP/USD reverses a spike to 1.3255 on poor UK PMI, USD comeback

• Hopes of changes to Irish border backstop and Brexit delay keeps the GBP underpinned.
• UK construction PMI contracts for the first time in eleven months.
• USD comeback amid renewed risk-aversion wave to cap the upside?

The GBP/USD pair broke its Asian consolidative phase to the upside and regained the 1.3250 barrier briefly to hit daily tops at 1.3255, as the GBP bulls remained boosted by the growing expectations of a delayed Brexit while the latest comments by the UK and Irish ministers to change the Irish border backstop also added to buoyant tone around the Cable.

Amidst Brexit optimism, markets are seen weighing in the disappointing UK construction sector activity report that showed the PMI slipping to 49.5 fothe r first time in eleven months in February.

Meanwhile, the bulls also appear to lack follow-through amid a solid comeback staged by the US dollar across its main competitors after a risk-off wave gripped the European markets on NY Times report that Huawei is preparing to sue the US government.

Looking ahead, the spot will remain at the mercy of the Brexit headlines and USD dynamics amid a lack of significant macro news from the US docket later on Monday.

GBP/USD Technical levels to watch