GBP/USD sticks to gains just below mid-1.3400s post-US data

   •  Softer US data fails to ease US bearish pressure. 
   •  Surging US bond yields only factor capping gains. 

The GBP/USD pair maintained its strong bid tone through the early NA session and had a rather muted reaction to today’s second-tier US economic releases. 

The pair traded within a narrow trading range below mid-1.3400s, still around 15-pips away from near two-week lows touched earlier today, after data released from the US missed consensus estimates. 

Data released from the US showed initial jobless claims held stable at 245K during the week ended December 22 (240K expected) and goods trade balance unexpectedly rose to $69.68 billion in November. 

Today’s weaker than expected US economic data did little to ease the prevailing bearish sentiment surrounding the US Dollar and helped the pair to stick to its gains, albeit further gains remained capped amid surging US Treasury bond yields. 

Today's US economic docket also features the release of Chicago PMI but is unlikely to be a game-changer amid pre-holiday thin liquidity conditions.

Technical outlook

Mario Blascak, European Chief Analyst at FXStreet writes: "Technically the GBP/USD has broken the downward sloping trendline resistance and it is heading higher. After the GBP/USD has easily passed the Fibonacci level of $1.3444, the next target for the currency pair is $1.3460. Further up move towards $1.3500-$1.3520, December 8 high is likely."