GBP/USD turns positive on the day above 1.4160

• GBP/USD reversed its direction after dropping toward 1.4100.
• US Dollar Index retreated modestly from daily highs.
• UK PM Johnson says they are on track to end restrictions on June 21.

The GBP/USD pair fell to a fresh daily low of 1.4112 during the European session but didn't have a difficult time erasing its losses. As of writing, the pair was up 0.1% on a daily basis at 1.4162.

Focus shifts to Fed's Beige Book

Earlier in the day, the broad-based USD strength forced GBP/USD to edge lower. After closing in the positive territory on the back of rising US Treasury bond yields on Tuesday, the US Dollar Index (DXY) extended its rally and reached a daily high of 90.25. However, with the benchmark 10-year US T-bond yield falling below 1.6%, the DXY lost its bullish momentum and was last seen rising 0.16% at 90.07.

Later in the session, the Federal Reserve's Beige Book will be looked upon for fresh impetus. Investors will pay close attention to comments on the inflation outlook. 

On the other hand, British Prime Minister Boris Johnson's optimistic remarks seem to be providing an additional boost to the GBP. While speaking to reporters on Tuesday, "I can see nothing in the data at the moment that means we can't go ahead with step four or the opening up on June 21st but we've got to be so cautious," Johnson said.

Technical levels to watch for