GBP/USD moves back above 1.30 handle, but lacks follow-through

   •  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.
 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.