GBP/USD confined in a trading range around 1.2500 mark

The GBP/USD pair struggled for a firm direction and seesawed between tepid gains and minor losses around 1.2500 psychological mark.

Currently trading around 1.2520-25 region, the pair remains was seen consolidating recent gains to over one-month high but remained capped below 100-day SMA strong hurdle. Moreover, market also seems to have priced-in Tuesday's UK Supreme Court verdict mandating Parliamentary approval for triggering Article 50 of the Lisbon Treaty. 

Meanwhile, lingering worries about the US President Donald Trump's protectionist stance and uncertainty over his fiscal stimulus plans seems to be restricting any swift US Dollar recovery. Hence, in absence of any fresh fundamental drivers, the pair is witnessing a range-bound trading action ahead of this week's important macro releases. 

The quarterly release of GDP growth numbers from UK and the US, on Thursday and Friday respectively, would now be looked upon to determine the pair's near-term directional move.

Technical levels to watch

On the downside, 1.2500 mark remains immediate support to defend, which if broken decisively could accelerate the slide back towards 50-day SMA support near 1.2420-10 region. A convincing break below 50-day SMA would negate any near-term bullish bias and turn the pair vulnerable to head back towards 1.2320-10 support area ahead of 1.2250 strong support.

Conversely, a decisive break through 100-day SMA hurdle near 1.2540-50 region now seems to pave way for continuation of the pair’s near-term recovery trend, initially towards reclaiming 1.2600 handle and eventually towards 1.2650-55 horizontal resistance.