GBP/USD flat, hovering around 1.3400

GBP/USD is consolidating modest losses, about to post the fourth decline in a row. The pair is hovering around 1.3400, down less than 50 pips for the day, affected by a stronger US dollar across the board. 

The greenback continues with its rally. The Dollar Index climbed to 93.37, the highest in a month before pulling back toward 93.10. Rising US bond yields boosted the USD. 

Cable bottomed on European hours at 1.3362 but then bounced to the upside after the upbeat UK CBI retail sales report. It found resistance at 1.3430 and during the last hours it has been moving sideways around 1.3400, still holding a bearish bias in the short-term.

Traders now await US President Trump speech on tax reform. Tomorrow in London, Bank of England Governor Carney will speak and on Friday UK GDP data will be released. 

Donald Trump’s speech Live Indianapolis - Tax Reform Rollout

Technical levels

To the upside, resistance levels might be located at 1.3430 (Sep 25 low), 1.3460 (Sept 27 high) and 1.3515 (Sep 26 high). On the flip side, support levels could be seen at 1.3360/65 (Sep 27 low), 1.3330 (Sep 13 high) and 1.3280.