GBP/USD flirts with daily lows, around 1.2600 mark
- GBP/USD failed to preserve early gains and started retreating from the 1.2665-70 supply zone.
- The intraday pullback remains cushioned amid the prevalent selling bias around the greenback.
- Investors now eye a scheduled speech by the BoE Governor Andrew Bailey for a fresh impetus.
The GBP/USD pair held on to its mildly softer tone through the mid-European session and was last seen trading near the lower end of its daily trading range, around the 1.2600 mark.
The pair struggled to capitalize on its intraday positive move and once again, met with some fresh supply near the 1.2665-70 resistance zone. The pair retreated around 70-75 pips from daily swing highs, albeit lacked any strong follow-through selling and remained well within a three-day-old trading range.
In the absence of any positive Brexit-related headlines, investors seemed reluctant to place any bullish bets around the British pound. However, the prevalent selling bias surrounding the US dollar extended some support to the GBP/UDS pair and helped limit any deeper losses, at least for the time being.
Despite a record jump in the number of new coronavirus cases, expectations that the worst of the pandemic was probably over and hopes of a swift global economic recovery remained supportive of the upbeat market mood. This, in turn, was seen as one of the key factors that undermined the greenback's safe-haven status.
There isn't any major market-moving economic data due for release on Monday, leaving the GBP/USD pair at the mercy of the USD price dynamics. This further makes it prudent to wait for some strong follow-through selling before confirming that the pair might have topped out and positioning for any further near-term depreciating move.
Moving ahead, market participants will now look forward to the Bank of England (BoE) Governor Andrew Bailey's scheduled speech later during the US session. Bailey's comments will influence the sterling and produce some meaningful trading opportunities, though seems unlikely to be a game-changer for the GBP/USD pair.
Technical levels to watch