GBP/USD clings to modest gains near session tops, around 1.3035-40 region

The GBP/USD pair recovered around 40-45 pips from Asian session lows and was last seen trading near the top end of its daily range, around the 1.3035-  |  27/10/2020 05:04
  • GBP/USD reverses an early dip to sub-1.3000 level and refreshed session tops in the last hour.
  • The uptick was exclusively sponsored by a mildly softer tone surrounding the safe-haven USD.
  • Coronavirus jitters, Brexit uncertainties might keep a lid on any strong move for the sterling.

The GBP/USD pair recovered around 40-45 pips from Asian session lows and was last seen trading near the top end of its daily range, around the 1.3035-40 region.

The pair continued showing some resilience below the key 1.3000 psychological mark, or 200-hour SMA and gained some positive traction on Tuesday. The GBP/USD pair, for now, seems to have snapped three consecutive days of the losing streak and stalled its recent pullback from the 1.3175 region amid a mildly softer tone surrounding the US dollar.

The greenback struggled to preserve its early gains despite growing market worries about the continuous surge in new coronavirus cases and fears of stricter lockdown measures, which could prove detrimental for the already fragile global economic recovery. The uncertain US political situation seemed to be the only factor that kept the USD bulls on the defensive.

Meanwhile, the fact that the EU's chief negotiator Michel Barnier delayed his return to Brussels and is expected to remain in the UK until Wednesday has boosted hopes for a last-minute Brexit deal. Nevertheless, the incoming Brexit-related headlines will continue to play a key role in influencing the GBP price dynamics and influence the GBP/USD pair.

There isn't any major market-moving economic data due for release from the UK. The US economic docket highlights the release of Durable Goods Orders data, due later during the early North American session. This, along with the broader market risk sentiment, will assist traders to grab some meaningful opportunities on Tuesday.

Technical levels to watch

 

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