GBP/USD recovers lost ground; struggles to find acceptance above 1.2400 mark
- GBP/USD reversed an early dip to the 1.2360-55 region amid some renewed USD weakness.
- The final UK Manufacturing PMI matched flash estimates and did little to influence the pair.
- Investors look forward to the US macro data and FOMC meeting minutes for a fresh impetus.
The GBP/USD pair rallied over 50 pips from the Asian session lows and jumped to fresh weekly tops, around the 1.2410-15 region in the last hour.
Despite concerns about the ever-increasing coronavirus cases across the world, the US dollar struggled to attract any haven flows and remained depressed through the first half of Wednesday's trading action. This, in turn, assisted the GBP/USD pair to attract some dip-buying reversed an early dip to the 1.2360-55 region.
The pair moved back above the 1.2400 round-figure mark, albeit struggled to build on the momentum or add to the previous day's strong move up of around 150 pips from the vicinity of monthly lows. Wednesday's in line final UK Manufacturing PMI for June failed to provide any meaningful impetus to the GBP/USD pair.
From a technical perspective, the pair stalled its intraday positive move near a resistance marked by the top end of a three-week-old descending trend-channel. A convincing breakthrough the mentioned barrier will be seen as a fresh trigger for bullish traders and set the stage for a move towards the key 1.2500 psychological mark.
Market participants now look forward to the US economic docket, highlighting the release of the ADP report on private-sector employment and ISM Manufacturing PMI. This will be followed by the release of minutes of the latest FOMC policy meeting, which might influence the USD price dynamics and produce some meaningful trading opportunities.
Technical levels to watch