GBP/USD consolidates in a range, holds steady above 1.2300 mark

GBP/USD failed to capitalize on the overnight positive move amid resurgent USD demand.
Investors now seemed to wait for fresh updates on the UK PM Johnson’s health conditions.
Wednesday’s release of the FOMC minutes might provide some short-term trading impetus.

Haresh Menghani FXStreet

The GBP/USD pair managed to recover around 30 pips from lows and is currently placed in the neutral territory, around the 1.2325 region.

Following the previous day's strong intraday rally of 220 pips and a late pullback from the vicinity of the 1.2400 mark, the pair witnessed some selling through the early part of Wednesday's trading action amid resurgent US dollar demand.

Increasing numbers of fatalities from the COVID-19 pandemic helped revive the greenback's perceived safe-haven demand against its British counterpart and turned out to be one of the key factors exerting some pressure on the major.

Despite the negative factor, the pair showed some resilience at lower levels as investors now seemed reluctant to place any aggressive bets and prefer to wait for a fresh update on the UK Prime Minister Boris Johnson's health.

It is worth recalling that Johnson was moved to intensive care earlier this week after his coronavirus symptoms worsened. According to the last update, Johnson was not on a ventilator and was receiving standard oxygen treatment.

Hence, it will be prudent to wait for a sustained move in either direction before positioning for any meaningful intraday momentum. Market participant on Wednesday will further take cues from the release of the FOMC meeting minutes.

Technical levels to watch

GBP/USD

Overview
Today last price	1.2322
Today Daily Change	-0.0010
Today Daily Change %	-0.08
Today daily open	1.2332

Trends
Daily SMA20	1.215
Daily SMA50	1.2637
Daily SMA100	1.2849
Daily SMA200	1.2658

Levels
Previous Daily High	1.2385
Previous Daily Low	1.2165
Previous Weekly High	1.2476
Previous Weekly Low	1.2205
Previous Monthly High	1.3201
Previous Monthly Low	1.1412
Daily Fibonacci 38.2%	1.2301
Daily Fibonacci 61.8%	1.2249
Daily Pivot Point S1	1.2204
Daily Pivot Point S2	1.2075
Daily Pivot Point S3	1.1984
Daily Pivot Point R1	1.2423
Daily Pivot Point R2	1.2513
Daily Pivot Point R3	1.2642

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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