GBP/USD fast approaching 1.3500 mark, US data eyed

   •  Investors look past today’s mostly in-line UK average earnings growth data.
   •  Surging US bond yields underpin USD demand and add to the pressure.
   •  US retail sales data to set the tone for action during the NY trading session.

After an initial uptick to 1.3572 level, the GBP/USD pair met with some fresh supply and has now retreated around 50-pips from session tops. 

The pair extended yesterday's rejection slide from levels just above the 1.3600 handle and was further weighed down by a follow-through pickup in the US Dollar demand.

With investors looking past today's mixed UK employment details, which provided a minor lift during the early European session, resurgent US Treasury bond yields underpinned the greenback demand and kept exerting downward pressure on the major. 

Looking at the broader picture, the pair has been oscillating within a broader range over the past one-week or so. Hence, it would be prudent to wait for a decisive break through the trading band before positioning for the pair's next leg of directional move.

Next on tap would be the release of US monthly retail sales data, a key highlight from today's US economic docket, which also features the release of Empire State manufacturing index, and might provide some meaningful impetus during the early NA session.

Technical levels to watch

Bulls might continue to try and defend the key 1.3500 psychological mark, below which the pair could slide back towards testing 4-month lows support near the 1.3460 region. On the upside, any meaningful up-move back above 1.3565-70 region might continue to confront fresh supply near the 1.3600 handle.