GBP/USD mildly weaker for third straight session, but holds above 1.30 mark

After yesterday's sharp retracement from fresh yearly tops, the GBP/USD pair seems to have entered a consolidation phase and has been oscillating within 50-pips broader trading range above the 1.3000 handle. 

The pair traded with a mildly weaker tone for the third consecutive session and is being weighed down by a modest pickup in the US Dollar demand. After yesterday's sell-off to 10-month lows, triggered by renewed fears that the US President Donald Trump would face difficulties in implementing his pro-growth policy agenda, the key US Dollar Index staged a goodish recovery and was seen weighing on the major.

Meanwhile, yesterday's softer UK inflation figures, which to some extent dampened hopes for any near term BoE monetary policy action also did little to extend any support to the British Pound, with the pair lacking any firm direction and holding stable around 1.3025-30 region.

Looking at the broader picture, the pair has managed to hold the key 1.30 psychological mark and hence, it would be prudent to wait for a decisive break through the mentioned handle before concluding that the pair might have topped out in the near-term.

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Traders now look forward to today's US economic docket, featuring the release of housing market data later during the NA session, in order to grab some fresh trading opportunities.

Technical levels to watch

On a sustained break below the 1.30 handle could extend the pair's corrective slide towards 20-day SMA support near 1.2920-15 region. On the flip side, any up-move might now confront immediate resistance near mid-1.3000s, above which the pair could aim back towards reclaiming the 1.3100 handle.