GBP/USD clings to gains near session tops, bulls eyeing a move beyond 1.2400 mark

The GBP/USD pair traded with a positive bias through the early European session, albeit continued with its struggle to find acceptance above the 1.2400 mark.

Following the previous day's directionless/two-way price action, the pair managed to regain some positive traction on the last trading day of the week and was being supported by the prevalent US dollar selling bias.

The latest optimism over the easing of lockdown restrictions, coupled with hopes for a quicker than anticipated global economic recovery from the coronavirus-induced lockdowns remained supportive of the upbeat market mood.

The risk-on flow was evident from a bullish trading sentiment around the global equity markets, which dented the US dollar's perceived safe-haven status against its British counterpart and provided a modest lift to the pair.

The greenback was further pressured by speculations that the Fed might be forced to push interest rates below zero, despite the fact that senior Fed officials have argued that negative rates were not appropriate for the US.

Despite the supporting factor, the sterling once again failed to capitalize on its move beyond the 1.2400 round-figure mark, making it prudent for bulls to wait for some follow-through buying before placing fresh bets.

Moving ahead, Friday's release of the closely watched US monthly jobs – popularly known as NFP – will play a key role in influencing the USD price dynamics. This, in turn, will produce some meaningful trading opportunities around the cable.

Technical levels to watch