The GBP/USD pair remained on the defensive post-UK inflation report, albeit has managed to rebound around 20-25 pips from the Asian session lows.
The pair witnessed some follow-through selling for the second straight session on Wednesday and extended the previous day's rejection slide from the very important 200-day SMA – levels just ahead of the 1.2700 marks. The pullback was sponsored by resurgent US dollar demand amid fears over a second wave of coronavirus infections and escalating geopolitical tensions.
On the other hand, the British pound failed to capitalize on its move up led by easing concerns about a no-deal Brexit, especially after the UK and the European Union agreed to intensify post-Brexit talks. The UK Prime Minister Boris Johnson added to the latest optimism and said that an outline of a deal could be reached by the end of July.