GBP/USD finds support ahead of 1.2500 mark amid weaker USD
- GBP/USD witnessed some selling for the second consecutive session on Friday.
- The downtick lacked any obvious fundamental catalyst and remained limited.
- The risk-on mood undermined the safe-haven USD and extended some support.
The GBP/USD pair met with some fresh supply during the early North American session and refreshed daily lows, around the 1.2510 region in the last hour, albeit quickly recovered few pips thereafter.
Despite the emergence of some fresh selling around the US dollar, the pair struggled to gain any meaningful traction and remained depressed for the second consecutive session on Friday. The optimism over additional stimulus measures and a vaccine for COVID-19 boosted the global risk sentiment, which prompted investors to dump the safe-haven greenback.
The USD was further pressured by a goodish pickup in the shared currency, which remained well supported by hopes of a deal on the EU's proposed €750 billion coronavirus recovery fund. Hence, the latest leg of a sudden fall over the past hour or so could be attributed to some cross-driven weakness stemming from a strong bid tone surrounding the EUR/GBP.
Meanwhile, the USD bulls seemed rather unimpressed by Friday's mixed US housing market data, which showed that Building Permits rose by 2.1% June as against the previous month's strong growth of 14.1%. Further details revealed that Housing Starts in the US surged by 17.3% during the reported month, though did little to provide any meaningful impetus.
The pair, however, once again managed to find some support ahead of the key 1.2500 psychological mark and quickly bounced around 25-30 pips to the 1.2535-40 region. The mentioned level might now act as a key pivotal point for traders, which if broken might turn the GBP/USD pair vulnerable to break through the weekly lows support near the 1.2480 region.
Technical levels to watch