GBP/USD spikes back to 1.3370 supply zone, focus remains on US CPI & FOMC

   •  USD fails to gain traction, despite an uptick in the bond yields.
   •  Pre-Fed repositioning trade infuses some volatility.
   •  US CPI eyed for short-term trading impetus.

The GBP/USD pair reversed the post-UK jobs data dip and move back closer to session tops to challenge the 1.3370-80 supply zone. 

A mildly softer tone around the US Dollar, despite a goodish pickup in the US Treasury bond yields, remained supportive of the bid tone surrounding the major.

Meanwhile, investors seemed to have digested today's mixed UK employment details, with some pre-Fed repositioning trade now infusing some volatility over the past hour or so. 

It would now be interesting to see if bulls are able to maintain the dominant position or the pair once again fails near 1.3370-80 immediate hurdle as traders now look forward to the US consumer inflation figures (CPI) for some fresh impetus.

The key focus, however, would remain on the FOMC announcement, due later during the NY session, which along with the accompanying rate statement/updated economic projection would turn out to be a key determinant of the pair's movement ahead of Thursday's BOE decision.

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes,"the pair is neutral, with the downward momentum easing, as the pair keeps bouncing from its 200 EMA, while technical indicators recover, but still within negative territory. The 20 SMA in the mentioned chart heads lower in the 1.3360 region, although a stronger resistance comes at 1.3385, where the pair has the 50% retracement  of the latest bullish run. It would take an advance above it to confirm additional advances, toward 1.3430, while below 1.3300, the decline will likely accelerate later today."