GBP/USD surrenders early modest gains, back below 1.3000 mark

The GBP/USD pair retreated around 40 pips from Asian session swing highs and has now dropped to the lower end of its daily trading range, around the 1.2985 region.

The pair failed to capitalize on the overnight rebound from one-week lows and a subsequent move to the 1.3025 area on Thursday, instead met with some fresh supply amid resurgent US dollar demand. Despite a goodish bounce in the equity markets, concerns about the ever-increasing coronavirus cases continued benefitting the greenback's status as the global reserve currency.

Investors remain worried that the imposition of fresh restrictions to curb the second wave of COVID-19 infections could derail the tepid global economic recovery. This, coupled with reports of a second nationwide lockdown in the UK held the GBP bulls from placing any aggressive bets and kept a lid on the early uptick for the GBP/USD pair amid persistent Brexit uncertainties.

However, the downside remains cushioned, at least for the time being, amid growing wariness about the outcome of the next week's US presidential election. National polls have been indicating that Democrat rival Joe Biden has a lead over Republican incumbent President Donald Trump, though the gap is narrow in certain key swing states.

There isn't any major market-moving economic data due for release from the UK. Hence, the key focus will be on the Advance US Q3 GDP report, due later during the early North American session. Any meaningful divergence from the anticipated figures will influence the USD price dynamics and assist traders to grab some meaningful opportunities.

Technical levels to watch