GBP/USD bulls reclaim the 1.3500 handle amid USD profit-taking

• GBP/USD rebounds from the 1.3450 level (low of the year).
• USD profit-taking is sparking a rebound in most major currency pairs.
• The USD dollar got a strong boost on Tuesday as US Treasury yields rose to levels not seen since 2011.

The GBP/USD is trading at around 1.3511 down 0.33% on Tuesday’s trading.

From the high at 1.3570 made in Asia, the pair fell about 120 pips on Tuesday. In the American session, the GBP/USD tested the 1.3450 level and market participants started to take profits on their shorts. Cable is now trading above the 1.3500 handle.

On Tuesday, the US dollar got a strong boost higher as the US Treasury yields rose above levels not seen since the summer of 2011. As a matter of fact, the 10-year Treasury yield benchmark rose to the 3.060% region. 

Earlier the US Retail Sales came mixed but the market disregarded the news and kept buying USD across the board. Earlier in the European session, the UK wages failed to impress market participants as the data matched analysts’ expectations. 

GBP/USD 4-hour chart

The medium-term trend is bearish and bulls are trying to stage a reversal up from the 1.3500 handle. The 1.3550 psychological level is the main resistance to break for buyers, the next resistance is seen at the 1.3600 and 1.3700 figure and previous swing low. To the downside, supports are seen at the 1.3500 figure and at the 1.3450 low of the day/year.