GBP / USD struggles to find direction, stuck in a range around 1.3400

  • GBP / USD lacks any firm directional bias and moves between tepid gains and minor losses.
  • The reversal of Omicron fears acted as a favorable wind for the British pound.
  • Traders appeared reluctant to take aggressive bets amid tight end-of-year liquidity.

The pair GBP/USD It retested daily highs in the last hour at 1.3414, although it quickly fell back a few pips and is trading neutral at this time around 1.3400 / 05.

After yesterday’s pullback from the high of more than a month, the GBP / USD pair is moving between tepid gains and minor losses in the early part of Friday. Recent optimism over reports that the Omicron variant could be less severe than feared helped offset concerns about the continued rise in new COVID-19 cases in the UK. In addition to this, a British study indicated that Omicron infections are less likely to lead to hospitalization, which, in turn, acted as a favorable wind for the British pound.

Apart from this, the subdued demand for the US dollar was seen as another factor that provided a modest rise to the GBP / USD pair. That said, the deadlock between the UK and the EU over the Northern Ireland Protocol prevented traders from placing aggressive bullish bets.

Technical levels

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