GBP/USD surges back closer to 1.39 mark, US data eyed

   •  Renewed USD selling bias helps regain traction.
   •  Surging US bond yield fails to stall the momentum.
   •  Traders await US economic data for fresh impetus. 

The GBP/USD pair finally broke out of its Asian/early European session consolidative phase and refreshed session tops in the past hour.

The pair stalled overnight retracement slide from fresh post-Brexit highs and found decent support near the 1.3800 handle. Moreover, some renewed US Dollar weakness remained supportive of the prevalent dip-buying interest and helped the pair to surge around 85-pips from session lows. 

Despite the ongoing upsurge in the US Treasury bond yields, the USD struggled to build on overnight strong rebound and was seen as one of the key factors driving the pair higher on Thursday. 

The momentum, however, seemed to fizzle ahead of the 1.3900 handle as traders now look forward to the US economic docket, featuring the release of housing market data, Philly Fed Manufacturing Index and weekly initial jobless claims, for some fresh trading impetus.

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes: "The 4 hours chart shows that the intraday slump was contained by buying interest around a still bullish 20 SMA, indicating that bulls lead."

"Beyond 1.3900, the pair will likely retest the mentioned high, en route to the 1.4000 price zone, a critical psychological threshold. Dips will likely continue attracting buying interest, as the pair would need to lose over 100 pips, and break below 1.3740 to actually enter bearish ground" she added further.