Forex News

GBP/USD consolidates in a range, holds steady above 1.2300 mark

  • GBP/USD failed to capitalize on the overnight positive move amid resurgent USD demand.
  • Investors now seemed to wait for fresh updates on the UK PM Johnson’s health conditions.
  • Wednesday’s release of the FOMC minutes might provide some short-term trading impetus.

The GBP/USD pair managed to recover around 30 pips from lows and is currently placed in the neutral territory, around the 1.2325 region.

Following the previous day’s strong intraday rally of 220 pips and a late pullback from the vicinity of the 1.2400 mark, the pair witnessed some selling through the early part of Wednesday’s trading action amid resurgent US dollar demand.

Increasing numbers of fatalities from the COVID-19 pandemic helped revive the greenback’s perceived safe-haven demand against its British counterpart and turned out to be one of the key factors exerting some pressure on the major.

Despite the negative factor, the pair showed some resilience at lower levels as investors now seemed reluctant to place any aggressive bets and prefer to wait for a fresh update on the UK Prime Minister Boris Johnson’s health.

It is worth recalling that Johnson was moved to intensive care earlier this week after his coronavirus symptoms worsened. According to the last update, Johnson was not on a ventilator and was receiving standard oxygen treatment.

Hence, it will be prudent to wait for a sustained move in either direction before positioning for any meaningful intraday momentum. Market participant on Wednesday will further take cues from the release of the FOMC meeting minutes.

Technical levels to watch

 

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