The GBP/USD pair maintained its offered tone and had a muted reaction to the release of durable goods orders from the US.
Currently trading around 1.2420-25 region, the pair was unmoved ater the US durable goods orders came-in slightly better-than-expected, at 1.8% for the month of January. Meanwhile, core durable goods orders (excluding transportation items) unexpectedly contracted by 0.2% as compared to 0.5% growth expected.
The data provided little impetus for the greenback, with the key US Dollar Index extending its consolidative price-action just above the 101.00 handle, as market participants keenly await the US President Donald Trump's first address to Congress on Tuesday, which might provide some clarity over his proposed pro-economic policies.
Meanwhile, renewed Brexit fears, in wake of fresh talks of a second Scottish independence referendum, kept the British Pound under some selling pressure through Monday's trading session.
Next on tap would be the release of pending home sales data from the US, which again might has limited impact on the markets but would still be looked upon for some short-term trading opportunities.
Technically, the pair has bounced again from the 1.2380 region, where buying interest has been aligned for the past two weeks, but the pair is so far unable to extend beyond 1.2440. In the 4 hours chart, technical indicators lack directional strength, with the Momentum indicator around its 100 level and the RSI around 41, whilst the price stands below its moving averages, all of which leans the scale towards the downside.
A downward acceleration below 1.2380 could see the pair quickly testing 1.2345, this month low and the 50% retracement of the January bullish rally. It will take a break below this last to confirm a steeper decline for the days ahead. To the upside, and in the short term, above 1.2440 the pair can recover up to 1.2480/1.2500, but seems unlikely the pair can extend further, unless US data disappoint big.