Having posted a session high near mid-1.3500s, the GBP/USD pair turned lower and retested previous session's swing lows support near the 1.3470-65 region.
The pair, however, has managed to bounce off lows and is currently hovering around the key 1.35 psychological mark as traders now look forward to the US data dump for some fresh impetus.
• GBP/USD bullish, probable surpass of 1.3655 – UOB
The BoE Governor Marc Carney's reluctance to further reinforce last week's hawkish BoE MPC meeting minutes has failed to provide any fresh bullish impetus, with bulls now struggling to retake the 1.36 handle.
• BoE: Carney’s speech was a bit more of a mixed bag - Rabobank
Meanwhile, the prevalent weaker tone around the US Dollar, backed by retracing US Treasury bond yields, helped limit deeper losses, at least for the time being.
Today's US economic docket, featuring the release of housing market data, current account numbers and export/import price index, would be looked upon for short-term trading opportunities.
Investors, however, are likely to wait for the UK monthly retail sales data and the much awaited FOMC decision, both due on Wednesday, before committing for the next leg of directional move.
Technical levels to watch
Valeria Bednarik, Chief Analyst at FXStreet writes: "Technical readings in the 4 hours chart shows that the price is back below the 23.6% retracement of the BOE-linked rally from late last week, at 1.3505, with a strong support now at 1.3440. A break below the mentioned 1.3440 level will signal further slides ahead, with the 1.3380 region as the next probable bearish target."
"The pair would need to recover above the 1.3550 level to turn intraday bullish, and attempt to regain the 1.3600 mark" she added further.
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