GBP/USD holds weaker below 1.3200 handle, Fed minutes awaited

Having failed to move past 1.3220-25 hurdle, the GBP/USD pair ran through some fresh offers and eroded part of previous session's strong gains.

The pair stalled its recovery move and snapped two-consecutive days of winning streak, despite a mildly softer tone around the US Dollar led by uncertainty over the US President Donald Trump's tax overhaul plan.

In absence of any fresh fundamental trigger, the pair's retracement could also be attributed to a modest pickup in the US Treasury bond yields and some repositioning trade ahead of today's publication of the FOMC minutes.

   •  US 10-year yield at the upper end of the six-month range - BBH

A December Fed rate hike action is already priced in the market and hence, the latest FOMC meeting minutes would influence expectations over the central bank's stance over the coming months and could have a lasting impact on the greenback. 

   •  FOMC meeting minutes in focus – Deutsche Bank

Heading into the key event risk, the release of JOLTS Job Openings data from the US would be looked upon for some short-term trading opportunities. 

Technical levels to watch

A follow through weakness below 1.3175-70 area is likely accelerate the slide back towards 100-day SMA support near the 1.3135 region, which if broken might turn the pair vulnerable to break below the 1.3100 handle.

On the upside, any up-move beyond the 1.3200 handle might continue to confront fresh supply near the 1.3220-25 area, above which a fresh bout of short-covering could lift the pair towards 1.3265 intermediate resistance ahead of the 1.3300 handle.