GBP/USD erase losses to reclaim 1.3100 handle

The GBP/USD pair once again managed to rebound from 1.3060-50 support area and jumped close to session high before retracing few pips to currently trade around 1.3100 handle. 

The pair got a temporary boost on comments from UK PM Theresa May's spokesman that the government has no legal obligation to consult the parliament on triggering ‘Article 50’. The up-tick, however, was short-lived amid broad based US Dollar strength on increasing Fed rate-hike prospects.

Next on tap would be the Conference Board's consumer confidence index, later during US trading session, which could provide some immediate impetus ahead of the keenly watched US monthly employment details on Friday that is expected to infuse a fresh bout of volatility in the FX market. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "Trading near its daily low, the 4 hours chat shows that the bearish bias is quite strong, as the 20 SMA continues heading sharply lower far above the current level, while technical indicators resumed their declines within bearish territory, with the Momentum indicator at fresh lows."

"A downward extension below the mentioned daily low should see the pair extending towards the 1.3020 region, the 61.8% retracement of its latest daily rally. Further slides below this last should trigger stops and see the pair plummeting towards the 1.2960 region."

"The pair is finding some selling interest around the 1.3100 level, and the 38.2% retracement of the same rally stands at 1.3120, being this last the level to surpass to deny further falls."