GBP/USD extends consolidative price-action just above mid-1.2700s

The GBP/USD pair extended its consolidative price-action within a 20-pips narrow trading range and struggled for a firm direction amid lackluster trading action on Friday.

The pair failed to build on previous session's up-move led by hawkish BoE tilt as the recent economic and political developments, and the impending Brexit negotiations continued weighing on the British Pound.

However, a mildly weaker sentiment surrounding the greenback, with the key US Dollar Index retreating from two-week highs touched in the aftermath of FOMC decision, helped the pair to hold with minor gains near 1.2760-65 band.

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Traders now look forward to the release of US housing market data and Prelim UoM Consumer Sentiment, due in a short while from now, for some fresh impetus. 

From a technical perspective, the pair has been oscillating within a 100-pips broader trading range between 1.2700-1.2800 handle. Hence, it would prudent to wait for a decisive break through the said range before committing to the pair's near-term trajectory.

Technical levels to watch

From current levels momentum above 1.2785-90 region, leading to a subsequent break through the 1.2800 handle, has the potential to continue boosting the pair further towards 1.2885 resistance area ahead of the 1.2900 round figure mark.

On the downside, sustained weakness below mid-1.2700s would turn the pair vulnerable to head back towards testing the 1.2700 handle before eventually dropping to retest post UK election swing lows support near 1.2635-30 region.