GBP/USD remains depressed near 1.2200 mark

The GBP/USD pair remained depressed through the early European session, albeit has managed to rebound around 20-25 pips from daily lows touched in the last hour.

The pair failed to capitalize on the previous day's goodish intraday bounce of around 75 pips from five-week lows, instead met with some fresh supply on the last trading day of the week. The downtick lacked any obvious catalyst and also seemed rather unaffected by some renewed US dollar selling bias.

The greenback struggled to extend its recent positive move that came after the Fed Chair Jerome Powell on Wednesday rejected the idea of negative rates. Adding to this, US President Donald Trump advocated a strong dollar, saying that it will help the economy during the recovery post coronavirus crisis.

Meanwhile, Friday's GBP modest slide could be attributed to some cross-driven weakness stemming from a modest uptick in the EUR/GBP pair. The shared currency outperformed its British counterpart in the absence of any major disappointment from the flash version of German/Eurozone Q1 GDP prints.

It will now be interesting to see if the GBP/USD pair continues to show some resilience at lower levels or prolongs its recent pullback from the very important 200-day SMA. Given that the pair has already confirmed a bearish break through the double-top neckline support near the 1.2300 mark, the chances of any meaningful recovery look slim.

Moving ahead, market participants now look forward to the US economic docket, highlighting the release of monthly Retail Sales figures. The data might influence the USD price dynamics and produce some meaningful trading opportunities later during the early North American session.

Technical levels to watch