GBP/USD Analysis: Bulls still struggling to find acceptance above 1.2400 mark

• GBP/USD gained some positive traction for the second straight session on Wednesday.
• The UK PM Johnson remained in the intensive care but his condition has been improving.
• A slew of important UK macro data failed to impress bulls or provide any meaningful impetus.

The GBP/USD pair edged higher for the second consecutive day and refreshed weekly tops on Wednesday, albeit ended around 35-40 pips off daily swing high. The British pound continued showing some resilience at lower levels and seemed rather unaffected by the increasing numbers of fatalities from the COVID-19 pandemic. Bulls took cues from the fact that the UK Prime Minister Boris Johnson's condition was reported to be improving somewhat, though he remains in the intensive care for the third night.

Apart from this, the latest optimism that the coronavirus pandemic peak could come soon provided a strong boost to investors' appetite for riskier assets. This was evident from a strong overnight rally in the US equity markets, which dented the US dollar's perceived safe-haven status and provided an additional boost to the pair's intraday uptick. Meanwhile, the release of the FOMC minutes did little to provide any meaningful impetus and the overall coronavirus situation acted as a key driver of the pair's momentum.

Despite the supporting factors, the pair continued with its struggle to find acceptance above the 1.2400 round-figure mark and edged lower during the Asian session on Thursday. A slew of important UK macro data also did little to impress bullish traders or assist the pair to capitalize on its positive move witnessed over the past two trading session. The market focus now shifts to the US economic docket, which highlights the release of initial weekly jobless claims. This along with March PPI figures and fresh developments surrounding the coronavirus saga might influence the USD price dynamics and contribute towards producing some meaningful trading opportunities.

Short-term technical outlook

From a technical perspective, the pair's repeated failures to sustain above the 1.2400 mark points to the prevailing selling bias at higher levels. That said, a sustained strength above the 1.2420 supply zone might prompt some near-term short-covering move and accelerate the momentum towards the next major hurdle near the 1.2475-80 region. The momentum could further get extended beyond the key 1.2500 psychological mark, possibly towards testing the 1.2560-65 supply zone.

On the flip side, immediate support is now pegged near the 1.2330-25 region and is closely followed by the 1.2300 round-figure mark. Failure to defend the mentioned support levels might prompt some technical selling and turn the pair vulnerable to slide back towards challenging the 1.2200 mark. Some follow-through selling has the potential to drag the pair further towards weekly lows, around the 1.2165 region, before bears eventually aim towards testing sub-1.2100 levels.