GBP/USD recovers further from one-month lows amid notable USD supply

• GBP/USD witnessed some short-covering move on the first day of a new trading week.
• The ongoing USD profit-taking helped offset mixed UK PMIs and remained supportive.

The GBP/USD pair built on its steady recovery move through the first half of the European session and climbed to fresh daily tops, around the 1.3670-75 region in the last hour.

Having defended the 1.3600 mark on Friday, the GBP/USD pair witnessed some short-covering move on the first day of a new trading week and stalled its recent downfall to one-month tops. The US dollar extended the previous session's retracement slide from the highest level since November 2020, which, in turn, provided a goodish lift to the major.

Worries that the continuous surge in coronavirus cases of the Delta variant could derail the global economic recovery forced investors to scale back their expectations for the Fed's tapering plan. Apart from this, a generally positive tone around the equity markets was seen as another factor that undermined the safe-haven greenback.

With the USD price dynamics turning out to be an exclusive driver, the GBP/USD pair had a rather muted reaction to mixed UK PMI prints for August. In fact, the Manufacturing PMI fell to a five-month low level of 60.1 in August. Adding to this, the gauge for the services sector fell sharply to six-month lows, or 55.5 during the reported month.

Meanwhile, a strong pickup in the US Treasury bond yields failed to impress the USD bulls or hinder the GBP/USD pair's intraday positive move. Market participants now look forward to the flash version of the US Manufacturing and Services PMI print for some short-term trading opportunities later during the early North American session.

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