GBP/USD holds steady above 1.2400 handle, lacks follow-through

Sliding US bond yields weighed on the USD and helped bounce off lows.
Persistent fears of a no-deal Brexit hold investors from buying the GBP.

Haresh Menghani FXStreet

The GBP/USD pair struggled to capitalize on its mid-European session bounce from fresh 27-month lows, albeit has managed to hold its neck above the 1.2400 handle.

Having touched an intraday low level of 1.2382 - the lowest since April 2017, the pair witnessed some short-covering move in the wake of a subdued US Dollar price action, albeit struggled to attract any strong buying interest amid persistent fears of a no-deal Brexit.

A fresh leg of a free fall in the US Treasury bond yields exerted some pressure on the greenback, which remained on the defensive following the disappointing release of US housing market data, and turned out to be one of the key factors behind the intraday rebound.

Apart from Brexit woes, tempered expectations of aggressive easing by the Fed when it announces its latest monetary policy decision at the end of a two-day meeting on July 30-31 further collaborated towards capping the pair's attempted recovery move.

Hence, it would be prudent to wait for a strong follow-through before confirming that the pair might be in the process of forming a near-term bottom or positioning for any meaningful short-covering bounce back towards reclaiming the key 1.2500 psychological mark.

Technical levels to watch

GBP/USD

Overview
Today last price	1.2412
Today Daily Change	0.0005
Today Daily Change %	0.04
Today daily open	1.2407

Trends
Daily SMA20	1.2599
Daily SMA50	1.2677
Daily SMA100	1.2891
Daily SMA200	1.2885

Levels
Previous Daily High	1.2522
Previous Daily Low	1.2396
Previous Weekly High	1.258
Previous Weekly Low	1.244
Previous Monthly High	1.2784
Previous Monthly Low	1.2506
Daily Fibonacci 38.2%	1.2444
Daily Fibonacci 61.8%	1.2474
Daily Pivot Point S1	1.2361
Daily Pivot Point S2	1.2316
Daily Pivot Point S3	1.2235
Daily Pivot Point R1	1.2487
Daily Pivot Point R2	1.2568
Daily Pivot Point R3	1.2613

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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