GBP/USD struggles to move further beyond 1.3800 handle

   •  USD recovery move seemed losing steam. 
   •  Overbought conditions warrant further consolidation. 

The GBP/USD pair quickly reversed an early European session but seemed struggling to build on its momentum beyond the 1.3800 handle. 

The pair's goodish rebound of over 40-pips from session lows lacked any specific trigger and could be solely attributed to a modest US Dollar retracement. After a goodish rebound during the Asian/early European session, the USD seemed losing steam and has been one of the key factors extending support to the major.

Meanwhile, the pair's good two-way moves over the past couple of day could now be categorized as consolidation phase, especially after the recent upsurge and amid near-term overstretched conditions. Hence, it would prudent to wait for a decisive break through the consolidative phase before positioning for the next leg of directional move.

Today's US economic docket, featuring the release of industrial production and capacity utilization data might assist traders to grab some short-term trading opportunities but is unlikely to provide any fresh directional impetus.

Technical levels to watch

Any subsequent up-move might continue to confront strong hurdle near the 1.3835 region, above which the pair seems more likely to aim towards reclaiming the 1.3900 handle. 

On the flip side, the 1.3750-40 region now seems to have emerged as an immediate support, which if broken might drag the pair below the 1.3700 handle towards its next support near the 1.3655 area.