GBP/USD off-lows, but stays below 1.2500

The GBP/USD pair failed to sustain the break above 1.25 handle in Asia, now oscillating back and forth in a 15-pips narrow range in the upper bound of 1.24 handle, as we head towards the European opening bells.

Cable deflated from highs amid resurgent USD demand, as the greenback attempted a minor-correction versus its major peers after yesterday’s extensive sell-off, triggered by a lack of clarity on the Fed’s intention of trimming the balance sheet size sometime this year.

However, the downside remains cushioned as risk-off moods cool-off a bit amid a recovery in the Asian equities and oil prices. Moreover, Wednesday’s solid UK services PMI print also offers support to the GBP bulls.

Amid a data-empty UK docket today, all eyes now remain on the US jobless claims and Trump-Xi Summit for fresh impetus on the spot.

GBP/USD Levels to consider            

Valeria Bednarik, Chief Analyst at FXtreet notes, “From a technical point of view, the pair maintains a neutral-to-bearish bias, as in the 4 hours chart, the pair was unable to surpass a horizontal 20 SMA around 1.2490, while technical indicators hold within bearish territory, but with no clear directional strength. The same chart shows that the pair bottomed multiple times over the last few days in the 1.2420/30 region, confirming that a break below 1.2410 is required for a downward extension that can extend down to 1.2330. Support levels: 1.2450 1.2410 1.2370 Resistance levels: 1.2490 1.2540 1.2585.”