GBP/USD tumbles to 1-1/2 week lows, 1.34 mark on sight ahead of Yellen

Having posted a session high level of 1.3515, the GBP/USD pair ran through some fresh offers and has now dropped to 1-1/2 lows in the 1.3425-20 region.

The pair's latest leg of sharp slide of around 50-pips over the past couple of hours could be solely attributed to persistent greenback buying interest. In fact, the key US Dollar Index touched fresh multi-week highs, backed by a modest uptick in the US Treasury bond yields, and has been one of the key factors behind the pair's retracement from higher levels. 

Meanwhile, the recent price action seems to suggest that investors remained non-committal in anticipation of any possible negative news coming out of the fourth round of Brexit negotiations. 

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Next in focus would be the US economic docket, featuring the release of CB Consumer Confidence Index and New Home Sales data, which might provide some short-term trading impetus ahead of the highly anticipated speech by the Fed Chair Janet Yellen.

US: Focus on Yellen - TDS

Technical levels to watch

A follow through weakness is likely to find immediate support near the 1.3400 handle, which if broken is likely to drag the pair towards 1.3380-70 horizontal zone en-route 1.3320-15 support.

On the upside, recovery move back above 1.3485 level now seems to lift the pair towards 1.3535-40 hurdle ahead of its next major barrier near the 1.3580-85 region.