GBP/USD: Bears guarding 1.2350 in sleepy holiday trading

by Jonathan Adams

The GBP/USD pair failed once again to extend the recovery above 1.2350 levels, and turned back lower, as the USD bulls appear to have fought back control ahead of an eventful US calendar this week.

More so, negative performance on the European indices also weighs down on the higher-yielding currency GBP, keeping any recovery mode in GBP/USD short-lived.

In the day, the spot may get influenced by cross-driven moves amid light trading, as the upcoming Eurozone final manufacturing PMI reports could have some impact on the EUR/GBP cross.

In terms of technical levels, upside barriers are lined up at 1.2355 (daily R1), 1.2389 (weekly high) and 1.2400 (round figure). While supports are seen at 1.2294 (10-DMA) and 1.2242 (Dec 30 low) and below that at 1.2200 (zero figure).

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