GBP/USD struggles to sustain above 1.2700 handle, remains confined in a range
- A modest USD pullback provides a minor lift in the last hour.
- Bulls remain reluctant amid persistent fears of a no-deal Brexit.
- Thursday’s final US GDP report will now be eyed for fresh impetus.
The GBP/USD pair failed to capitalize on its intraday bullish spike to levels beyond the 1.2700 handle and quickly retreated around 20-30-pips in the last hour.
A modest US Dollar pullback from highs turned out to be one of the key factors that provided a minor intraday lift to the major, though bulls lacked any conviction amid increasing fears of a no-deal Brexit.
The greenback lost some traction after China's foreign ministry spokesman came out with a clarification and said that they were not aware of any report on a tentative trade truce between the two countries.
Meanwhile, the fact that the favourite UK PM candidate Boris Johnson remains committed to leave the EU by October 31st, even without a deal held the GBP bulls on the defensive and capped the attempted bounce.
Traders also seemed rather unaffected by Johnson's surprising comments that the chances of a no-deal Brexit are a “million-to-one”, though the downside remained limited amid absent relevant fundamental catalysts.
Looking at the broader picture, the pair has been oscillating in 50-pips narrow trading range over the past 24-hours or so and hence, it would be prudent to wait for a sustained break in either direction before positioning for any meaningful intraday momentum.
Moving ahead, Thursday's US economic docket - highlighting the final version of the US Q1 GDP report, will influence the USD price dynamics later during the early North-American session and might produce some short-term trading opportunities.
Technical levels to watch