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  • GBP/USD struggled for a firm direction and has been oscillating in a range.
  • A subdued USD price action seemed to be the only factor lending support.
  • The near-term technical set-up remains tilted in favour of bearish traders.

The GBP/USD pair extended its two-way/directionless price moves through the early European session and remained confined in a range just above the 1.2400 round-figure mark.

The British pound remained depressed in the wake of this week’s report that the US is considering to impose tariffs on $3.1 billion of imports from the United Kingdom and the EU. This comes amid persistent Brexit-related uncertainties and kept a lid on any meaningful upside for the GBP/USD pair.

Meanwhile, the downside remains cushioned, at least for the time being, amid a subdued US dollar price action. However, worries that a surge in new coronavirus cases might trigger renewed lockdown measures should continue to drive some haven flows towards the USD and cap any upside for the GBP/USD pair.

Hence, any attempted positive move might still be seen as a selling opportunity amid absence relevant market moving economic releases from the UK. The GBP/USD pair remains vulnerable to slide back towards retesting weekly lows, around the 1.2335 region, before eventually dropping below the 1.2300 mark.

Moving ahead, Friday’s second-tier US macro data will now be looked upon for some short-term trading impetus later during the early North American session. The US economic docket features the release of Core PCE Price Index, Personal Income/Spending data and revised Michigan Consumer Sentiment Index.

Technical levels to watch