GBP/USD bounces off lows, still in red near 1.3760 level
| • USD rebound losing steam amid weaker US bond yields.
• Investors looked past softer UK core CPI print.
• US manufacturing data eyed for fresh impetus.
The GBP/USD pair stalled its post-UK CPI corrective slide near the 1.3740 region and has managed to rebound around 20-pips from session lows.
Today's in-line headline UK CPI print and a slightly softer core CPI numbers, which eased little more than expected prompted some selling and dragged the pair below its Asian session consolidation phase.
This coupled with a goodish pickup in the US Dollar demand further collaborated to the pair's retracement slide from levels beyond the 1.3800 handle, fresh post-Brexit highs touched in the previous session.
Further downside, however, remained cushioned amid weaker tone surrounding the US Treasury bond yields, which failed to assist the USD to build on its modest recovery bounce from a three-year trough near the 90.00 handle.
Currently trading around the 1.3760 region, traders now look forward to the US economic docket, featuring the only release of Empire State Manufacturing Index, for some fresh impetus.
Technical levels to watch
Any meaningful retracement is likely to find support near the 1.3730-25 region and is closely followed by the 1.3700 handle. On the upside, 1.3790-1.3800 region now seems to have emerged as an immediate resistance, above which the pair could surpass 1.3820 level (yesterday's high) and aim towards reclaiming the 1.3900 handle.
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