GBP/USD takes a sharp U-turn, back below 1.3500

The GBP/USD pair stalled its recovery mode in the European session, having failed to chew the offers above 1.35 handle, as a sense of caution sets into the markets heading towards the Fed Chair Yellen’s speech.

GBP/USD: Will it regain 1.35 handle?

The spot reversed a part of the recent upmove, mainly in response to a fresh bid-wave caught by the US dollar against its main peers, as the EUR/USD pair resumed its German election backed sell-off into a second day today.

Also, Cable’s slide back below 1.35 handle is due to a minor recovery seen in the EUR/GBP cross from a dip to 0.8754 lows. Meanwhile, negative European equities combined with weaker oil prices weigh on the market sentiment, in turn having a negative impact on the risk currency GBP.

Markets seem to have ignored better-than expected UK BBA August mortgage approvals data, as they eagerly await the US consumer confidence data and Yellen’s speech for fresh trading impetus.

GBP/USD levels to consider             

According to Ross J. Burland, Analyst at FXStreet, “technically, 1.3443 remains as the supporting area ahead of a deeper retracement to 1.3350. On the flipside, a break of the 1.3580/90 resistance area opens up 1.3640/70 as a double Fibo target and the 2014-2017 downtrend target.”