GBP/USD regains 1.3400 and above

After bottoming out near 1.3360 in early trade, GBP/USD has now retaken the 1.3400 handle and beyond.

GBP/USD focus on US data, Fedspeak, Brexit

Cable trimmed part of its earlier decline, as the upbeat momentum around the greenback seems to be taking a breather for the time being.

Spot, however, is posting its fourth consecutive daily retracement so far, all amidst the absence of relevant headlines in the Brexit negotiations – a EU-UK press conference is due tomorrow – and a solid rebound of the US Dollar.

The greenback is deriving further upside from the solid pace of yields in the US money markets and expectations over a potential announcement of Trump’s tax reform plans later in the European evening.

Data wise in the UK docket, CBI’s distributive trades survey came in at 42 for the current month, surpassing estimates and improving from August’s reading.

On the US data space, pending home sales and durable goods orders are expected later in the NA session. In addition, FOMC’s L.Brainard (permanent voter, dovish), Minneapolis Fed N.Kashkari (voter, dovish), St. Louis Fed J.Bullard (2019 voter, dovish) and Boston Fed E.Rosengren (2019 voter, centrist) are also due to speak.

GBP/USD levels to consider

As of writing the pair is losing 0.25% at 1.3425 and a breach of 1.3364 (low Sep.27) would pave the way for a test of 1.3270 (21-day sma) and then 1.3262 (23.6% Fibo of the 2017 up move). On the upside, the next resistance aligns at 1.3490 (10-day sma) seconded by 1.3607 (2014-2017 downtrend) and finally 1.3658 (2017 high Sep.20).