GBP/USD remains on the defensive below mid-1.3300s, focus still on Ukraine conflict
- GBP/USD attracted some dip-buying near the 1.3315 area on Friday, though lacked follow-through.
- The worsening situation in Ukraine underpinned the safe-haven greenback and capped the upside.
- Investors now eye US NFP for some impetus, though the focus remains on the Russia-Ukraine saga.
The GBP/USD pair reversed an Asian session dip, albeit struggled to capitalize on the move and was last seen trading in the neutral territory, just below mid-1.3300s.
News that Russian troops are shelling Europe's largest nuclear power plant in Ukraine triggered a fresh wave of the global risk aversion trade during the early part of the trading on Friday. This, in turn, boosted the safe-haven US dollar and exerted some downward pressure on the GBP/USD pair.
The risk sentiment, however, stabilized after the International Atomic Energy reported that there has been no change reported in radiation levels at the Zaporizhzhia nuclear power plant site. Adding to this, Ukraine's emergency services said that the fire at the nuclear plant has been extinguished.
This, along with weaker US Treasury bond yields, capped the upside for the greenback and assisted the GBP/USD pair to attract some buying near the 1.3315 zone. That said, the risk of a further escalation in the Russia-Ukraine held back bulls traders from placing aggressive bets around the pair.
Looking at the broader picture, the GBP/USD pair has been oscillating in a familiar trading range since the beginning of this week. This further makes it prudent to wait for some follow-through buying before confirming that the recent led down has run its course and positioning for further gains.
Market participants now look forward to the release of the US monthly jobs data, due later during the early North American session. The popularly known NFP might influence the USD and provide some impetus to the GBP/USD pair, though the focus remains on headlines surrounding the Russia-Ukraine saga.
Technical levels to watch