GBP/USD rebounds from weekly lows, back above mid-1.2800s

The GBP/USD pair quickly reversed an early European session dip to weekly lows and has now moved back above mid-1.2800s, back closer to the top end of its daily trading range.

The pair extended this week's retracement slide and witnessed some follow-through selling through the early part of Wednesday's trading session, albeit managed to find some support ahead of the 1.2800 round-figure mark.

Focus shifts to US macro data

Uncertainty surrounding the outcome of UK snap election on December 12, especially after the latest poll indicated a narrowing gap between the ruling Conservatives and the Labour Party, was seen weighing on the British Pound.

This coupled with a modest pickup in the US dollar demand, supported by an uptick in the US Treasury bond yields amid growing optimism over a possible US-China trade deal, further collaborated to the pair's intraday slide.

However, in absence of any fresh UK political headlines, investors seemed reluctant to place any aggressive bets and helped the pair to stall the downfall, rather recover around 40 pips from a daily low level of 1.2827.

Moving ahead, Wednesday's US economic docket – highlighting the release of Durable Goods Orders and the second estimate of Q3 GDP growth figures – will now be looked upon for some meaningful trading impetus.

This coupled with a slew of second-tier US economic releases – Pending Home Sales, Personal Income and Spending data – might further influence the USD price dynamics and produce some short-term trading opportunities.

Technical levels to watch