The GBP/USD pair extended the previous session's rejection slide from the 1.2475 supply zone
and witnessed some selling on the last trading day of the week. Against the backdrop of a sustained buying around the US dollar, the pair was further pressurized by a downward revision of the UK services PMI. A sharper-than-anticipated contraction in the UK services sector activity comes amid a nationwide lockdown and undermined the British pound.
However, it will be prudent to wait for a sustained break below the 1.2200 round-figure mark before positioning for a further near-term depreciating move towards challenging the 1.2100 mark en-route the 1.2075-70 support zone.
On the flip side, the 1.2300 round-figure mark now seems to act as immediate resistance and any subsequent positive move is likely to confront some fresh supply near the 1.2375-80 region. Some follow-through buying, leading to a move beyond the 1.2400 mark, has the potential to lift the pair further, though it seems more likely to remain capped near the 1.2475-85 strong resistance zone.