The GBP/USD pair refreshed daily tops during the early European session, with bulls making a fresh attempt to build on the momentum beyond the 1.3700 mark. The pair stalled the previous day's retracement slide from the 1.3755-60 supply zone, or multi-year tops, and attracted some dip-buying ahead of mid-1.3600s on Tuesday. The upbeat market mood prompted some fresh selling around the safe-haven US dollar, which, in turn, was seen as a key factor driving the GBP/USD pair higher.
Investors turned optimistic about a strong global economic recovery amid firming expectations for massive US fiscal stimulus measures, especially after Democrat lawmakers on Monday filed the $1.9 trillion budget measure. The move was seen as a step toward bypassing Republicans and get it passed in the US Congress.