GBP/USD moves back closer to 100-pips trading range hurdle, around 1.2830
|The GBP/USD pair prolonged its consolidative price-action and retreated from the top end of 6-day old trading range, albeit has managed to hold its neck above the 1.2800 handle.
Currently trading around 1.2825-30 band, today's mildly bearish tone lacks any fundamental drivers and could be solely attributed to a modest US Dollar recovery, despite of retreating US treasury bond yields. The downslide, however, has been limited as investors seems to have paused ahead of the US President Donald Trump's keenly awaited tax plan announcement, later during the day.
• GBP/USD: Downtrend now appears mature - Westpac
Looking at the broader picture, the pair has been oscillating within 100-pips broader trading range between 1.2750-1.2850. Against the backdrop of last week's strong up-surge to the highest level since early Oct., led by the UK PM Theresa May's surprise announcement to call for a snap election, the pair recent price action could be categorized as consolidative phase. Hence, it would be prudent to wait for a decisive break through the recent trading range before committing to the pair's next leg of directional move.
With an empty US economic docket, the pair remains at the mercy of USD price-dynamics and optimism surrounding Trump's promised package to overhaul the US tax code.
Technical outlook
"The key support is Friday's low of 1.2765, with the pair turning bearish only below it. The next support and probable bearish target comes around 1.2710. A strong resistance comes at 1.2845, which means that the pair needs to accelerate through 1.2850 to be able to advance further, targeting then the 1.2900/10 region" writes Valeria Bednarik, Chief Analyst at FXStreet.
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