GBP/USD weakens back below 1.35 mark, off nearly 100-pips from session tops

The GBP/USD pair failed to build on early up-move and retreated around 100-pips from session high level of 1.3571.

Currently trading around 1.3485-90 level, off session lows touched in the last hour, the pair's sharp pull-back since early European session has been primarily led by a strong pickup in the US Dollar demand. 

This coupled with some nervousness, ahead of the fourth round of Brexit talks, might have also prompted traders to lighten their bullish positions. 

   •  UK: Shift in the position towards an ‘economically rational’ Brexit - ING

In absence of any fresh fundamental trigger, the softer tone could also be attributed to some cross driven weakness. In fact, the GBP/JPY cross has now surrendered all of its early gains and the EUR/GBP cross once again has managed to find some buying interest near the 0.8785-75 region.

There isn't anything in terms of any major market moving economic releases and hence, speeches by influential FOMC members - New York Fed President William Dudley, Chicago Fed President Charles Evans and Minneapolis Fed President Neel Kashkari, would now be looked upon for some fresh impetus. 

   •  US: Fed speak in focus – TDS

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "The daily high is the immediate resistance, with gains beyond the level probably resulting in a test of 1.3610 level, ahead of the yearly high at 1.3653. Below 1.3495 on the other hand, the mentioned 1.3440/50 region comes next. A break below this last seems unlikely for today, although once below it, the downward move will likely accelerate towards the 1.3380 level."