The GBP/USD pair has been trading sideways for the last two days, with the price trading in a tight range between the levels of 1.2870 and 1.3001.
The major went back and forth during the course of the day on Wednesday, reaching the daily low of 1.2844, to end the day at 1.2946. Today, the pair attempted to regain the critical 1.3000 zone, but failed to do so and retreated back to 1.2950.
Despite the gradual recovery, sterling remains fragile as global fears keep growing after the Brexit vote. In addition, U.K.’s industrial and manufacturing production data are due later in the European session, followed by the NIESR gross domestic product estimate.
In the event that the price breaks below 1.2873, the pair could find support at 1.2797 and 1.2676 respectively. On the flip side, in the scenario where the price manages to break above 1.3171, the pair could rise up to 1.3387 and 1.3533 in extension.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.