• GBPUSD regains some positive traction on Thursday amid modest USD weakness.
• The upside potential seems limited as traders keenly await the key US CPI report.
• The BoE’s gloomy economic outlook also contributes to capping gains for the pair.

The GBPUSD pair attracts some dip-buying near the 1.1350 region on Thursday and recovers a part of the previous day's heavy losses. Spot prices stick to intraday gains through the first half of the European session, though seem to struggle to capitalize on the move beyond the 1.1400 round figure.

A modest downtick in the US Treasury bond yields, along with a positive tone around the equity markets, fail to assist the safe-haven US Dollar to build on the overnight bounce from a multi-week low. Apart from this, some repositioning trade ahead of the crucial US consumer inflation figures caps the upside for the greenback, which, in turn, is seen lending some support to the GBPUSD pair.

That said, a combination of factors is holding back traders from placing aggressive bets and acting as a headwind for spot prices. Despite expectations that the Federal Reserve will slow the pace of its policy tightening, the markets are still pricing in the possibility of at least a 50 bps rate hike in December. This should help limit the downside for the US bond yields and the greenback.

Furthermore, the Bank of England's gloomy outlook for the UK economy might continue to undermine the British Pound and contribute to capping the upside for the GBPUSD pair. Traders might also prefer to wait for a fresh catalyst from the highly-anticipated US CPI report. The data will influence future rate hikes by the Fed and play a key role in driving the USD demand in the near term.

This, in turn, warrants some caution for bulls and positioning for any further intraday appreciating move for the GBPUSD pair. The focus will then shift to the Preliminary UK Q3 GDP report, scheduled for release on Friday. Traders will further look to British Finance Minister Jeremy Hunt's planned fiscal statement on November 17 to determine the next leg of a directional move for the major.

Technical levels to watch