GBP/USD consolidates near 2-1/2 month lows, around 1.2900 mark

• GBP/USD struggles to register any meaningful recovery amid Brexit uncertainties.
• A subdued USD demand extended some support and helped limit the downside.

The GBP/USD pair lacked any firm directional bias and seesawed between tepid gains/minor losses through the early European session on Monday.

The pair was seen oscillating in a narrow trading band around the 1.2900 round-figure mark on the first day of a new trading week and consolidated the recent fall to 2-1/2-month lows.

Brexit worries likely to cap the upside

Concerns that Britain might crash out of the European Union (EU) at the end of the transition period later this year continued undermining the British pound and capped the upside.

On the other hand, the US dollar held steady near four-month tops, albeit lacked any strong buying interest amid a modest intraday pullback in the US Treasury bond yields.

A subdued USD demand might turn out to be the only factor that might help limit the downside amid absent relevant market-moving economic releases, either from the UK or the US.

Meanwhile, any incoming Brexit-related headlines might influence the sentiment surrounding the sterling, which might contribute towards producing some meaningful trading opportunities.

Technical levels to watch