GBP/USD surges through 1.34 mark, refreshes session tops ahead of US data

The GBP/USD pair reversed an early drop to two-week lows and surged through the 1.3400 handle to refresh session highs in the past hour. 

The pair to stall its corrective slide and recovered over 80-pips from daily lows touched earlier today, in the aftermath of the BoE Governor Mark Carney and the UK PM Theresa May's speeches at the Bank of England's conference, in London.

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After hitting a one-month high on Thursday, the recent US Dollar rally seems to have paused and could have been one of the factors that assisted the pair to snap its four consecutive days of losing streak. 

It, however, remains to be seen if the pair is able to build on the recovery move or the current pull-back is utilized to initiate fresh bearish bets amid recent hawkish rhetoric by the Fed and renewed optimism over the US President Donald Trump's tax reforms.

Next in focus would be the final revision of the US GDP growth numbers, which along with second-tier US economic data would now be looked upon for some fresh trading impetus.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "A downward extension below the daily low, should see the decline accelerating towards 1.3290, while below this last, the slide can continue down to 1.3250. To the upside, and above 1.3410, the pair can recover up to 1.3460, where selling interest will likely reject the advance."