- GBP/USD drifts back into the negative territory for the fourth straight session on Friday.
- A sustained break below the 1.2400 mark awaited to confirm a fresh bearish breakdown.
The GBP/USD pair failed to capitalize on its early uptick, instead met with some fresh supply near the 1.2455 region and has now dropped to the lower end of its daily trading range.
The pair managed to gain some positive traction during the early part of the trading activity on the last day of the week and got an additional boost following the release of stronger-than-expected UK retail sales data. The uptick lacked any strong bullish conviction and quickly ran out of the steam, with bears now awaiting a sustained break below the 1.2400 round-figure mark.
The British pound retained its softer tone in the aftermath of the Bank of England’s decision on Thursday to boost quantitative easing by £100 and indication that the is further monetary easing coming. This coupled with concerns about a surge in new coronavirus cases benefitted the US dollar’s relative safe-haven status and contributed to the GBP/USD pair’s downtick.
The pair has now drifted back into the negative territory for the fourth consecutive session – also marking its sixth day of a downfall in the previous seven – and held near three-week lows set on Thursday. Some follow-through selling will be seen as a fresh trigger for bearish trades and set the stage for an extension of the GBP/USD pair’s bearish trend witnessed since the beginning of this week.
There isn’t any major market-moving economic data due for release from the US. Hence, the key focus will be on the Fed Chair Jerome Powell’s comments during a panel discussion later during the US session. Powell’s remarks will play a key role in influencing the USD price dynamics and produce some meaningful trading opportunities.
Technical levels to watch
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