• A short-lived USD dip provides a temporary boost during the early European session.
• Further up-move remains capped ahead of Thursday BoE monetary policy meeting.
• Traders eye US PPI figures in order to grab some short-term opportunities.
The GBP/USD pair struggled for a firm direction and seesawed between tepid gains/minor losses, within a broader trading range through the early European session.
A positive opening across European equity markets, pointing to improving risk sentiment prompted some softening in the US Dollar and helped the pair to rebound around 45-50 pips from an intraday low level of 1.2993.
The uptick wasn't backed by any fresh news/development and thus, lacked any strong follow-through momentum/conviction. Moreover, a modest USD slide turned out to be short-lived and was quickly bought into, which further collaborated towards keeping a lid on any meaningful up-move.
Despite a good two-way move, the pair struggled for a firm direction as investors now seemed to refrain from placing any aggressive bets ahead of the latest BoE monetary policy update, due to be announced on Thursday.
In the meantime, today's release of the US PPI print might help traders grab some short-term trading opportunities later during the early North-American session.
Technical levels to watch
Immediate resistance is pegged near 1.3060-65 region, above which the pair is likely to aim towards reclaiming the 1.3100 handle. On the flip side, any meaningful slide below the key 1.30 psychological mark is likely to find strong support near the 1.2965-60 region, which if broken might turn the pair vulnerable to drop further towards testing the 1.2900 handle.
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