“¢ Fails to build on Friday’s goodish up-move amid a modest USD rebound.
“¢ Brexit uncertainties further collaborate towards capping any up-move.
The GBP/USD pair extended its consolidative price action through the mid-European session and is currently placed in neutral territory, just below mid-1.2800s.
With investors looking past not so hawkish remarks by the Fed Chair Jerome Powell, at the closely watched Jackson Hole symposium, a modest US Dollar was seen as one of the key factors failing to assist the pair to build on Friday’s goodish rebound from the 1.2800 handle.
Meanwhile, looming Brexit uncertainties kept the GBP bulls on the defensive and further collaborated towards keeping a lid on any follow-through up-move for the major. Moreover, holiday-thinned liquidity conditions on the back of a bank holiday in the UK could be another factor leading to a subdued price action at the start of a new trading week.
In absence of any fresh catalyst, the pair seesawed between tepid gains/minor losses and remained capped below Friday’s swing high level of 1.2882. Hence, it would be prudent to wait for a convincing move in either direction before positioning for the pair’s intraday momentum amid absent major market-moving economic releases, either from the UK or the US.
Technical levels to watch
On a sustained move beyond the 1.2880-85 area, coinciding with 20-day SMA, the pair is likely to surpass the 1.2900 handle and test its next major hurdle near the 1.2930 region. Alternatively, a decisive break below the 1.2800 immediate strong support might turn the pair vulnerable to accelerate the slide to mid-1.2700s en-route the 1.2700 handle.
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