That’s a really nice question. Basically you want to constraint movement not to the world axis, but to the actor’s local axis.
I don’t think you can do that right out of the box, especially in blueprints, since BPs and constraints don’t really work together a lot.
The only solution I can think of as of now is maybe to create an invisible parent component and use a physics constraint to limit the movement to one local axis of the parent, but make the child rotation not dependent on the parent rotation, but vice versa, i.e. the parent replicates the child’s rotation.
Anyway, that’s just a thought, I don’t actually know if it’s possible to do something like that. I’ll have to check it a bit later.
P.S. Dear Epic, please add the possibility to lock Axis Loation and Rotation via Blueprints, that function is so much needed.