GBP/USD stuck in 20-pips range ahead of UK GDP

• Back near 5-DMA at 1.3380
• Rebound capped amid broad USD demand.
• The UK final GDP & current account – Up next.

The GBP/USD pair managed to reverse a brief dip to 1.3369 lows reached in early Asia and now makes another attempts to regain 1.34 handle, as we progress towards late-Asian/ early European trading.

GBP/USD: Thin trades to limit further upside?

The spot recovers most losses and trades neutral amid a lack of fresh fundamental drivers, as broad-based USD rebound continues to cap the recovery moves while cross-driven strength lends support to the GBP bulls.

The greenback staged a solid comeback versus its main peers after the EUR/USD pair fell sharply on the Catalan election outcome, which showed that the Catalan separatists won a majority in Spanish regional election. The USD index bounced from 92.82 levels to regain the 93 mark, now +0.15% higher on the day.           

Meanwhile, the losses seen in EUR/GBP also lift the demand for the pound across the board, keeping the downside cushioned. However, it remains to be seen if the spot keeps its range-play intact, following the release of the UK macro news, the final GDP, and current account data, as markets expect the broader market sentiment to play a key role amid pre-Christmas thin trading.

Also, of note remains the US durable goods, core PCE price index and consumer sentiment data for fresh USD moves, which will eventually impact the pair.

GBP/USD Technical Levels

According to Valeria Bednarik, Chief Analyst at FXStreet, “The pair remains inside a descendant channel, which roof converges this Friday with the daily high of 1.3386, making of the level the immediate resistance for the upcoming sessions, although the pair will need to surpass the 1.3420 price zone, to actually gain potential upward, with scope then to extend up to 1.3465 December 14th daily high. Support levels: 1.3340 1.3300 1.3260. Resistance levels: 1.3385 1.3420 1.3465.”