GBP/USD bounces off lows; lacks follow-through

• A modest USD pullback assisted GBP/USD to reverse an early European session dip.
• Concerns over the economic fallout from the coronavirus capped any further gains.

The GBP/USD pair quickly reversed an early European session dip to the 1.2435 region and has now moved to the top end of its daily trading range.

The pair rallied around 60 pips in the last hour, back closer to the key 1.2500 psychological mark and the intraday uptick was sponsored by a modest US dollar pullback from highs, albeit lacked any strong follow-through.

A softer tone surrounding the US Treasury bond yields kept a lid on the early USD uptick, instead prompted some selling at higher levels and turned out to be a key factor behind the pair's sudden spike over the past hour or so.

However, persistent worries over the economic fallout from the coronavirus pandemics, coupled with the ever-increasing cases/deaths in the United Kingdom help investors from placing any aggressive bullish bets and capped gains.

Hence, it will be prudent to wait for a sustained strength above Friday's intraday swing high, around the 1.2520-25 region, before positioning for any meaningful positive move amid absent relevant market-moving economic releases.

Technical levels to watch