- GBP/USD struggled to capitalize on its intraday positive move amid a goodish USD rebound.
- A sharp turnaround in the equity markets drove some haven flows towards the greenback.
- The downside seems limited, warranting some caution before placing aggressive bearish bets.
The GBP/USD pair retreated nearly 50 pips from daily swing lows and has slipped below the 1.3900 mark, back closer to the lower end of its daily trading range during the early North American session.
A turnaround in the global equity markets drove some haven flows and assisted the US dollar to reverse its early lost ground back closer to one-month lows. This, in turn, was seen as a key factor that failed to assist the GBP/USD pair to capitalize on its intraday positive move, rather prompted some selling around the 1.3935-40 region.
That said, a fresh leg down in the US Treasury bond yields – amid expectations that the Fed will retain its ultra-lose policy stance for a longer period – might cap gains for the greenback. Apart from this, a combination of factors acted as a tailwind for the British pound and might help limit any meaningful slide for the GBP/USD pair.
Investors remained optimistic over the declining trend of new COVID-19 cases in the UK. This, along with a more robust UK economic recovery, has been fueling speculations that the Bank of England (BoE) could be among the first major central banks to scale down its stimulus support. This, in turn, should continue to underpin the sterling.
Nevertheless, the GBP/USD pair, so far, has managed to hold with modest intraday gains. In the absence of any major market-moving economic releases, any subsequent downfall might still be seen as a buying opportunity. This should act as a key pivotal point for intraday traders amid absent relevant market-moving economic releases.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats to 1.0700 area following post-PCE jump
![EUR/USD retreats to 1.0700 area following post-PCE jump](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/photo-of-the-american-and-euro-banknotes-57153806_XtraSmall.jpg)
After spiking to a daily high of 1.0720 with the immediate reaction to US PCE inflation data, EUR/USD lost its traction and declined to the 1.0700 area. Investors remain cautious ahead of this weekend's French election and make it difficult for the Euro to gather strength.
GBP/USD stays below 1.2650 after US inflation data
![GBP/USD stays below 1.2650 after US inflation data](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-688526532_XtraSmall.jpg)
GBP/USD struggles to preserve its bullish momentum and trades below 1.2650 in the American session on Friday. Earlier in the day, the data from the US showed that the annual core PCE inflation declined to 2.6% in May, limiting the USD's upside and helping the pair hold its ground.
Gold keeps its daily gains near $2,330 following US PCE data
![Gold keeps its daily gains near $2,330 following US PCE data](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/stacked-gold-bars-13094022_XtraSmall.jpg)
Gold prices maintain their constructive bias around $2,330 after US inflation readings gauged by the PCE matched consensus in May and US yields advance slightly across the curve.
BTC struggles around the $62,000 level
![BTC struggles around the $62,000 level](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptocurrenciesusd_XtraSmall.jpg)
Bitcoin price faces pullback resistance at the lower band of the descending wedge around $62,000. Ethereum price finds support at $3,288, the 61.8% Fibonacci retracement level. Ripple price faces resistance at $0.500, its daily resistance level.
French Elections Preview: Euro to suffer after the calm, as specter of extremists, uncertainty rise Premium
![French Elections Preview: Euro to suffer after the calm, as specter of extremists, uncertainty rise](https://editorial.fxstreet.com/images/Macroeconomics/Countries/Europe/Eurozone_countries/France/pantheon-paris-with-french-flag-8748101_XtraSmall.jpg)
The first round of French parliamentary elections is set to trigger high uncertainty. Soothing messages from the far right and far left leave the Euro vulnerable to falls. Calm may return only after the second round of voting on July 7.