GBP/USD Price Analysis: Consolidates in a range below 1.2400 mark, NFP awaited

• GBP/USD gained some positive traction on Friday, albeit struggled to sustain above 1.2400 mark.
• The set-up seems tilted in favour of bearish traders and supports prospects for a further decline.

The GBP/USD pair held on to its mildly positive tone through the mid-European session, albeit seemed struggling to gain any meaningful traction and remained well within the previous day's broader trading range. The pair's inability to find acceptance/build on the momentum beyond the 1.2400 mark points to persistent selling bias at higher levels.

This comes on the back of a bearish double-top chart pattern formation near the very important 200-day SMA and suggests that the recent bearish trend witnessed over the past one week or so might still be far from being over. Meanwhile, neutral technical indicators on the daily chart warrant some caution for aggressive bearish traders.

Hence, it will be prudent to wait for a sustained weakness below the 1.2300-1.2290 horizontal support before positioning for any further near-term depreciating move, possibly towards the 1.2250-45 intermediate. The GBP/USD pair might then extend the downward trajectory further towards testing its next major support near the 1.2200 round-figure mark.

On the flip side, a convincing break through the post-BoE swing highs, around the 1.2415-20 region, might prompt some near-term short-covering move and assist the pair to aim back towards reclaiming the key 1.2500 psychological mark. Some follow-through buying has the potential to lift the pair further towards the 1.2600 mark en-route the 1.2640-50 supply zone.

GBP/USD daily chart

Technical levels to watch