GBP/USD confined in a trading band around 1.3000 handle

On Wednesday, the GBP/USD pair was confined in a narrow trading band and is now currently trading at the mid-point of daily range. 

Having posted a session high at 1.3031 and a session low at 1.2984, the pair is currently hovering around 1.3000-10 band and has failed to build on to its tepid recovery witness in the previous two trading session. 

Traders seemed unimpressed with the release of US durable goods orders for August and failed to provide any direction to the pair. 

With the Fed Chair Janet Yellen's testimony before the Committee on Financial Services get underway, focus would remain any comments on the central bank's near-term monetary policy outlook and the timing of next rate-hike action.

Today's US docket is filled with speeches from various Federal Reserve members, including Cleveland Fed Loretta Mester one of the three dissenters at the latest FOMC monetary policy meeting. Hence, the pair's next leg of move would be solely dependent on the demand-dynamics surrounding the greenback.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "The short term technical picture is modestly bullish, as the pair bounced sharply after testing its 20 SMA while technical indicators hold within positive territory, although with no directional strength. The price needs to accelerate above the mentioned Fibonacci resistance to be able to extend its gains up to 1.3100, while the daily low, 1.2980 around the mentioned 20 SMA, is the immediate support with a break below it probably implicating a downward extension towards 1.2920/30."