GBP/USD fails to clear 1.2400 barrier, US data ahead

The GBP/USD pair reversed all of its gains to the 1.2400 handle and retreated back to mid-1.2300s ahead of the US economic releases.

Spot ran through some fresh offers near monthly tops amid goodish greenback recovery, with the key US Dollar Index bouncing off sub-100.00 level and is currently placed around 100.20 region.

In absence of any major market moving economic releases, the pair's retracement could be attributed to some profit taking following over 250-pips up-surge in just three trading session, led by perceived dovish Fed and hawkish BoE outlook. 

Meanwhile, traders also turned cautious in anticipation of any news coming out of the G20 meeting and could have further collaborated to the pair's minor retracement from two-week highs. 

Next in focus would be the US economic docket, featuring the release of industrial production and Prelim UoM Consumer Sentiment index for March, which would be looked upon for some fresh impetus during early NA session ahead of the Trump-Merkel meeting later during the day.

Technical levels to watch

A follow through retracement below 1.2330-25 region is likely to accelerate the profit-taking slide towards 1.2300-1.2290 strong horizontal support, below which the pair is likely to head back towards testing mid-1.2200s support area.

On the flip side, momentum back above 50-day SMA resistance near 1.2375-80 region, leading to a subsequent break through the 1.2400 handle, seems to pave way for continuation of the pair's upward trajectory towards its next major hurdle near 1.2435-40 region.