GBP/USD surrenders early modest gains, back below 1.3000 mark
|- A goodish rebound in the equity markets assisted GBP/USD to gain some traction on Thursday.
- Coronavirus jitters continued to benefit the safe-haven USD and kept a lid on the early uptick.
- Investors now look forward to the release of the Advance US Q3 GDP report for some impetus.
The GBP/USD pair retreated around 40 pips from Asian session swing highs and has now dropped to the lower end of its daily trading range, around the 1.2985 region.
The pair failed to capitalize on the overnight rebound from one-week lows and a subsequent move to the 1.3025 area on Thursday, instead met with some fresh supply amid resurgent US dollar demand. Despite a goodish bounce in the equity markets, concerns about the ever-increasing coronavirus cases continued benefitting the greenback's status as the global reserve currency.
Investors remain worried that the imposition of fresh restrictions to curb the second wave of COVID-19 infections could derail the tepid global economic recovery. This, coupled with reports of a second nationwide lockdown in the UK held the GBP bulls from placing any aggressive bets and kept a lid on the early uptick for the GBP/USD pair amid persistent Brexit uncertainties.
However, the downside remains cushioned, at least for the time being, amid growing wariness about the outcome of the next week's US presidential election. National polls have been indicating that Democrat rival Joe Biden has a lead over Republican incumbent President Donald Trump, though the gap is narrow in certain key swing states.
There isn't any major market-moving economic data due for release from the UK. Hence, the key focus will be on the Advance US Q3 GDP report, due later during the early North American session. Any meaningful divergence from the anticipated figures will influence the USD price dynamics and assist traders to grab some meaningful opportunities.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.