GBP/USD sits at session tops ahead of US data, key focus remains on Yellen's speech

The GBP/USD pair gained some fresh traction on Friday and extended previous session's rebound from near two-month lows. 

The US Dollar ticked lower across the board and has been one of the key factors supporting the pair's up-move since early European session. The pair is now challenging a previous minor support break-point, turned resistance, near the 1.2840 region as investors wait for the highly anticipated speeches from key central bankers.

The Fed Chair Janet Yellen's speech at the Jackson Hole Symposium could provide some clues over the central bank's near-term monetary policy outlook and influence sentiment surrounding the greenback. Also in focus would be a speech from the ECB President Marion Draghi, which could have an indirect impact through the EUR/GBP cross. 

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However, the recent dovish BOE tilt, coupled with uncertainty surrounding the Brexit talks might continue to keep a lid on any sharp near-term up-move for the pair, with any meaningful bounce could be seen as an opportunity to initiate fresh short positions.

Up next would be the release of durable goods orders from the US, which could provide some short-term trading opportunities but is unlikely to prove as a major game changer. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, "the 4 hours chart shows that the price has advanced above a bearish 20 SMA, while technical indicators are pressuring their mid-lines towards the upside, with limited upward strength. Should the pair rally beyond 1.2840, the risk turns towards the upside, with the market eyeing an extension towards 1.2900/20, where selling interest will likely re-surge. The weekly low of 1.2773 is the key support, as below it, the decline could extend towards the 1.2700 figure."