The GBP/USD pair traded with a negative bias through the early European session, albeit has managed to rebound over 50 pips from daily swing lows. The pair was last seen trading around the 1.3430-35 region, down around 0.20% for the day. The pair failed to capitalize on the previous day's solid bounce of over 300 pips from sub-1.3200 level and witnessed some selling during the early part of the trading action on Tuesday. The intraday downtick was sponsored by resurgent US dollar demand, though lacked any strong follow-through selling.
The British pound was further pressured by the imposition of fresh lockdowns and travel restrictions in the UK. The negative factors, to a larger extent, were offset by overnight reports that the EU was considering a compromise on fishing rights – a key sticking point in the post-Brexit trade talks.