GBP/USD spikes to fresh session tops, 1.36 mark back on sight

   •  USD extends profit-taking slide and was further weighed by retracing US bond yields.
   •  Thursday’s dovish BoE statement might continue to keep a lid on any strong up-move.

The greenback extended its corrective slide on Friday, helping the GBP/USD pair to rebound around 75-80 pips from the 1.3500 handle and move back above the very important 200-day SMA. 

Yesterday's softer US CPI print now seems to dampened prospects for aggressive Fed rate hike moves in 2018. The same was evident from a follow-through retracement in the US Treasury bond yields, which kept the US Dollar bulls on the back-foot and remained supportive of the pair's goodish rebound. 

The pair has now recovered around 120-pips from the post-BoE swing low level of 1.3460 and is currently placed near session tops, around the 1.3575-80 region, albeit now seemed lacking any strong follow-through.

Hence, it would be prudent to see if the pair is able to build on the momentum or the recovery bounce is seen as an opportunity to initiate some fresh short positions, especially after the BoE's dovish tilt on Thursday.

Next on tap would be the release of Prelim UoM Consumer Sentiment, the only highlight from today's thin economic docket, which would be looked upon to grab some short-term trading opportunities.

Technical levels to watch

Bulls would be eyeing for a convincing breakthrough the 1.3600 handle, above which the pair is likely to accelerate the recovery move further towards the 1.3645-50 support-turned-resistance. On the flip side, weakness back below the 1.3545 region (200-DMA) might continue to find support near the 1.3500 handle and any subsequent slide now seems limited till the 1.3465-60 support area.