GBP/USD struggling to clear 1.2450 immediate barrier

The GBP/USD pair held on to minor recovery gains, albeit is seen struggling to gain further traction beyond 1.2450 region.

Currently trading around 1.2440-45 band, a mild greenback retracement, primarily led by profit-taking, has been the key factor supporting the pair's recovery from Thursday's two-week low. 

The greenback, as measured by the overall US Dollar Index, corrected on Friday as investors seemed inclined to take some profits off the table following its recent up-surge to near 14-year highs in wake of Fed decision to raise interest rate and hawkish outlook.

Today's relatively lighter US economic docket, featuring building permits and housing starts, might provide some impetus for short-term traders, while the broader trend would remain dependent on US Dollar price-dynamics, which remains underpinned in reaction to the FOMC outlook for Federal-funds rate in 2017.

Technical levels to watch

A strong follow through buying interest above 1.2450 level might trigger a fresh bout of short-covering and lift the pair immediately towards 1.2500 psychological mark ahead of 1.2530-35 resistance area. On the downside, convincing break back below 1.2400 handle, leading to a subsequent weakness below multi-week lows support near 1.2380-75 region, now seems to turn the pair vulnerable to head towards testing its next support near 1.2300 region.