GBP/USD sits a little lower on the day, just under its 200-hour moving average
The pair is trading near the lows for the day, but the overall range today is a measly 30 pips (1.2420-50) as major currencies are more tepid to start the day.
That said, the thing to take note of is that cable buyers have been struggling to break back above the 200-hour MA (blue line) currently @ 1.2453.
As such, sellers remain in near-term control but they aren't really pushing the issue with the low yesterday @ 1.2421 and mild support closer to the 1.2400 handle still in play.
Those will be the key areas - 1.2400 especially - to watch out for in the session ahead should the trading range extend to the downside in the coming hours.
The dollar is trading more mixed on the session so far, gaining against the euro, pound and franc but is keeping slightly weaker against the aussie, kiwi, loonie, and yen.
But looking ahead in the coming days, the pound may have its own risks to worry about.
There are two things that aren't really working in favour of the pound right now. The first being that the UK is still struggling to move away from lockdown and to reopen its economy in a gradual manner. The second being looming Brexit risks ahead of talks next week.
On the latter, post-trade negotiations will resume in the week ahead but is still likely to not make any meaningful progress.
As such, the clock is ticking before the end-June 'deadline' of needing concrete progress or the UK government will be prepared to walk without a deal at the end of the year.
On the balance of things, that should likely be a negative factor to weigh on the pound in the coming weeks.
