Sterling briefly touched 1.3550 before retracing nearly all gains, closing with a net advance of under 10 pips.
GBP/USD surged to 1.3550 on Monday, marking its highest level in three months, but reversed course within hours. The pair closed with a net gain of less than 10 pips, failing to sustain the breakout.
The move followed a period of consolidation, with sterling previously trading below 1.3500. Analysts noted the spike lacked fundamental drivers, as no major economic data or policy shifts were reported.
Market reaction was muted, with traders attributing the brief rally to short-covering rather than a shift in sentiment.