GBP/USD extends its struggle with 1.2350 into Europe

The GBP/USD pair is seen moving back and forth in a 30-pips narrow range over the last hours, as the major lacks direction amid an eventless Asian session and subdued trading activity around the US dollar.

GBP/USD manages to regain daily picot at 1.2334

The major is seen failing several attempts to take on the recovery above the mid-point of 1.23 handle post-China open, as bulls remain unimpressed by persisting risk-on trades led by higher oil and copper prices.

However, at the same time, the downside also remains restricted as the greenback trades largely subdued against most of its major rivals, while stalled buying seen in the US treasury yields underpins the demand for the pound as an alternative higher-yielding asset.

The spot is last seen exchanging hands at 1.2338, down -0.06% on the day, while the USD index trades lack-lustre around 101.35.

Nothing of note for the major in the day ahead, and hence, focus now remains on the UK treasury’s Autumn Forecast Statement and FOMC minutes due later this week.

GBP/USD Levels to consider            

At 1.2420, the pair finds immediate resistances placed at 1.2363/75 (daily high/ 5-DMA), 1.2400/10 (round figure/ 20-DMA) and 1.2455 (10-DMA). While supports are lined up at 1.2321 (daily low) and 1.2300 (daily S2) and below that at 1.2218 (Nov 2 low).