GBP/USD sidelined near 1.29 handle, moves little post-US durable goods orders data

   •  Mixed US durable goods orders did little to lift the USD.
   •  Brexit uncertainties might continue to cap any further gains.

The GBP/USD pair trimmed a part of its early recovery gains to levels beyond the 1.2900 handle, albeit has managed to hold in positive territory post-US macro data.

The US Dollar bulls seemed rather unimpressed from better-than-expected US durable goods orders data, coming in to show m/m growth of 0.8% as against a decline of 0.9% anticipated. 

The positive headline reading, however, was largely negated by a slight disappointment from core durable goods orders (excluding transportation items), showing a rise of 0.1% m/m as compared to 0.4% expected, and initial weekly jobless claims.

Today’s mixed report did little to provide any fresh impetus, with persistent Brexit uncertainties continuing to weigh on the British Pound and keeping a lid on any meaningful up-move from seven-week lows touched in the previous session.

Technical levels to watch

Any attempted bounce is likely to confront some fresh supply near the 1.2940 level, above which a bout of short-covering could lift the pair further towards reclaiming the key 1.30 psychological mark. On the flip side, a follow-through selling below the 1.2880 immediate support now seems to turn the pair vulnerable to break through an intermediate support near mid-1.2800s and head towards testing the 1.2800 handle.