Having posted a session low near 1.2760 region, the GBP/USD pair gained some traction and spiked to fresh session tops during early European session.
The pair's mildly positive bias, however, lacked any strong follow through momentum, with the region around 1.28 acting as immediate resistance amid reluctance to initiate/carry big bets ahead of the start of Brexit negotiations.
Meanwhile, receding fears of 'hard Brexit', in wake of the disastrous UK snap election result, and last week's hawkish BoE MPC vote might continue to extend some support to the British Pound, which might ultimately result into another subdued, range-bounce price action within four-day old trading range.
With an empty economic docket, any news coming out of the Brexit negotiations is likely to be an exclusive driver of the pair's movement in the near-term.
Technical levels to watch
Momentum beyond the 1.2800 handle is likely to face some fresh supply near 1.2820 area, above which a fresh bout of short-covering could lift the pair towards 1.2885 resistance ahead of the 1.2900 handle.
On the flip side, 1.2755-50 area now seems to have emerged as immediate support, which if broken is likely to accelerate the slide towards the 1.2700 handle before the pair eventually drops to post UK election swing lows support near 1.2630-25 region.
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