“¢ Fails to capitalize on early gains despite the ongoing USD retracement.
“¢ Brexit uncertainty/dovish BoE outlook keeps a lid on any strong up-move.
“¢ Traders now eye ADP report and US Q1 GDP print for some fresh impetus.
The GBP/USD pair stalled its recovery move ahead of the 1.3300 handle and quickly retreated around 30-35 pips from session tops.
A sharp US Dollar retracement slide, despite a goodish pickup in the US Treasury bond yields, helped the pair to build on overnight rebound from the lowest level since Nov. 28 amid near-term oversold conditions.
However, persistent uncertainty surrounding impending Brexit talks, against the backdrop of recent dovish BoE tilt, held investors back from placing aggressive bets and eventually kept a lid on any strong up-move.
In absence of any market moving economic releases from the UK, the USD price dynamics is turning out to be an exclusive driver of the pair’s momentum through the early European session.
Moving ahead, today’s US economic docket, featuring the release of ADP report on private sector employment and the second estimate of Q1 GDP growth figures will now be looked upon to grab some short-term trading opportunities.
Technical levels to watch
Renewed weakness back below the 1.3250-40 region might turn the pair vulnerable to slide back towards challenging the 1.3200 round figure mark. On the upside, the 1.3290-1.3300 area might continue to act as an immediate resistance, above which a fresh bout of short-covering could lift the pair further towards 1.3375-80 supply zone en-route the 1.3400 handle.
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