GBP/USD reverses a dip to 2-week lows, back closer to session tops

   •  Modest USD selling bias helps rebound from the 1.3300 neighborhood. 
   •  Bears seemed reluctant to place aggressive bets ahead of FOMC/BOE.
   •  UK jobs data/US CPI to contribute towards determining near-term direction. 

The GBP/USD pair quickly reversed a dip to 2-week lows and has managed to recover around 50-60 pips from the vicinity of 1.3300 handle. 

The pair had a good two-way move on Tuesday and is now inching back closer to the top end of its daily trading range touched in reaction of the latest UK CPI print, which climbed to its highest level since 2012.

The pair's latest leg of up-move lacked any fresh fundamental catalyst and was primarily led by persistent US Dollar weakness, despite a goodish pickup in the US Treasury bond yields. 

The uptick could also be attributed to some cross-driven strength steaming out of a modest pull-back witnessed around the EUR/GBP cross and some short-covering, especially after bears failed to break through the 1.3300 handle. 

Traders now look forward to the US PPI print for some short-term trading impetus, but the key focus would remain on the FOMC/BOE monetary policy decisions on Wednesday and Thursday, respectively. 

This along with important macro data, including the UK employment figures and the latest US inflation figures on Wednesday, would help investors determine the pair's near-term trajectory.

Technical levels to watch

Immediate resistance is pegged near 1.3385 level and is closely followed by the 1.3400 handle, above which the pair is likely to aim towards testing 1.3435-40 supply zone.

On the flip side, 1.3335 level now becomes an immediate support to defend, which if broken could now drag the pair below the 1.3300 handle towards its next support near the 1.3280-75 region.