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  • GBP/USD attracts some dip-buying near the 1.2400 mark amid a modest USD pullback.
  • A positive turnaround in the European equity markets undermined the safe-haven USD.
  • Investors now look forward to important US macro data for some meaningful impetus.

The GBP/USD pair broke out of its Asian session consolidation phase and spiked to fresh daily tops, around the 1.2460-65 region in the last hour, albeit lacked follow-through

Having shown some resilience near the 1.2400 round-figure mark, the pair managed to regain some positive traction on Thursday and recovered a part of the previous day’s sharp intraday slide from one-week tops. The US dollar struggled to preserve its early gains amid a positive turnaround in the European equity markets. In fact, the German DAX is now up by 0.6% for the day and undermined the greenback’s relative safe-haven demand.

Apart from this, the GBP/USD pair’s intraday uptick lacked any obvious fundamental catalyst and runs the risk of fizzling out quickly. Concerns about a surge in coronavirus cases might keep a lid on any risk-on rally. This makes it prudent to wait for some strong follow-through buying before traders start positioning for any further near-term appreciating move for the GBP/USD pair amid absent relevant market moving UK economic releases.

Moving ahead, market participants now look forward to a slew of important US macro data will be eyed for a fresh impetus. Thursday’s US economic docket highlights the release of Initial Weekly Jobless Claims, Durable Goods Orders and the final Q1 GDP report. This, along with the broader market risk sentiment will influence the USD price dynamics and produce some meaningful trading opportunities later during the early North American session.

Technical levels to watch