GBP/USD recovers lost ground, still below 1.34 handle

   •  Weaker USD helps rebound around 35-40 pips from mid-1.3300s.
   •  USD further weighed down by sliding US bond yields.
   •  Traders now eye US economic docket for fresh impetus. 

After an initial dip to mid-1.3300s, the GBP/USD pair caught some bids and refreshed session tops in the past hour.

The pair stalled overnight retracement and comfortably broke through the Asian/early European session consolidation phase, but now seems facing some resistance ahead of the 1.3400 handle. 

The uptick lacked any fresh catalyst and was primarily driven by a softer tone surrounding the US Dollar, amid fading optimism over the passage of a long-awaited US tax reform legislation. 

Meanwhile, a sharp retracement in the US Treasury bond yields exerting some additional downward pressure on the greenback and further collaborated to the pair's modest pickup. 

In a quiet pre-holiday trading session on Thursday, bulls are likely to remain cautious as there could be more selling pressure lined-up near yesterday's swing high resistance, around the 1.3420 level. 

Traders now look forward to the US economic docket, featuring the final revision of US Q3 GDP growth figures, along with Philly Fed Manufacturing Index and usual initial weekly jobless claims, in order to grab some short-term opportunities.

Technical levels to watch

A clear break through the 1.3400 handle, leading to a subsequent momentum beyond 1.3420 level, is likely to accelerate the up-move towards 1.3475-80 supply zone en-route the key 1.3500 psychological mark.

On the flip side, mid-1.3300s now seems to have emerged as immediate support, which if broken would expose the 1.3300 strong support before the eventually drops to 50-day SMA support near the 1.3280-75 region.