GBP/USD trades directionless around 1.2770, US data eyed

The upside attempts in GBP/USD remains capped near 1.2785 region, leaving the pair to waver in a 25-pips tight range so far this Friday.

GBP/USD: Range-trade to continue ahead of the US data?

The spot extends its choppiness into the European session, as the bulls take a breather ahead of the US dataflow, especially with the Fed and BOE monetary policy events now behind.

However, the sentiment around cable continues to remain underpinned amid a hawkish vote surprise from the BOE, while a rebound in oil prices combined with positive European equities offer support to the risk currency GBP.

All eyes now remain on the US housing datasets, consumer sentiment and LMCI for fresh momentum on the prices. Meanwhile, speech by the FOMC member Kaplan will be also closely eyed.

GBP/USD levels to consider             

Valeria Bednarik, Chief Analyst at FXStreet noted: “Technically, the pair maintains a neutral stance, given that in the 4 hours chart, the price is hovering around a horizontal 20 SMA, whilst the Momentum indicator turned south right above its 100 level while the RSI indicator turned flat around its 50 level. Investors will likely remain side-lined ahead of Brexit negotiations, set to start next Monday. Support levels: 1.2705 1.2660 1.2635 Resistance levels: 1.2780 1.2830 1.2870.”