GBP/USD trims gains after UK data, still higher at 1.3460-70

The GBP/USD pair's recovery from session low level of 1.3363 has gained traction, lifting the pair close to 1.3500 handle before retracing back to currently trade around 1.3460-70 band after the release of UK GDP and current account deficit.

According to the data released just a short while ago, the final print of UK economic growth for the first quarter of 2016 matched previous estimates showing a growth of 0.4%. Meanwhile, the current account deficit came-in higher-than-expected at 32.6 billion, which for the time being seems to have halted the pair's bullish momentum.

Next on tap would be US economic releases that include - weekly jobless claims and Chicago PMI data, scheduled later during US trading session.

During early Asian trading session the pair was weighed down by Brexit led political uncertainty as markets now await for announcement for the leader of the Conservative party. 

Later on Thursday, the BOE Governor Mark Carney is also scheduled to address a press-conference regarding how UK would handle the Brexit referendum and also answer questions from the press. This would be Carney's second speech after last week Britons voted to end their membership with the European Union.

Technical levels to watch

From current levels, the pair seems more likely to head back above 1.3500 psychological mark and extend its bullish momentum towards testing the trend-channel resistance, currently near 1.3590-1.3600 region.

On the downside, weakness back below 1.3400 handle might accelerate the fall immediately towards 1.3300 round figure mark, below which the pair could be drop back towards 1.3215-1.3200 horizontal support before heading back towards multi-decade lows to test 1.3150 support area.