GBP/USD climbs back above 1.3400 as the USD losses strength

• GBP/USD rebounds and trims losses, still facing intraday pressure.
• Greenback pulled back across the board, holds to gains against European currencies.

The GBP/USD pair rose more than 50 pips from the lows and climbed back above 1.3400. The US Dollar lost strength during the US session and pulled back across the board.

Cable trimmed losses as the greenback moved off daily highs. The US Dollar Index fell from 93.75 back to the 93.50 area. Market participants focus their attention on the G7 meeting and are also getting ready for next week busy schedule that includes the FOMC meeting.

Short-term technical outlook

The pair is testing the 20-hour moving average at 1.3405/20. A break higher could clear the way to more intraday gains. The immediate resistance is seen at 1.3435/40 (daily high) followed by 1.3455.

As long as it remains under 1.3410 the pound could be seen as vulnerable. The immediate support is seen at 1.3380 that protects daily lows at 1.3353 and also a key uptrend line around 1.3340/50: a break of that line would weaken the technical outlook for the next sessions significantly.