GBP/USD remains capped below 1.42 handle ahead of UK GDP

   •  Rebound around 100-pips from overnight swing lows.
   •  Renewed USD weakness helps regain traction.
   •  Key GDP figures eyed for fresh directional impetus.

The GBP/USD pair gained some positive traction during the Asian session on Friday, albeit now seems struggling to move back above the 1.4200 handle.

The pair stalled its overnight sharp retracement slide of around 270-pips from levels beyond the 1.4300 handle, triggered by the US President Donald Trump's stronger US Dollar comment, and held comfortably above mid-1.4100s. 

Some renewed USD weakness, despite a mildly positive tone around the US Treasury bond yields, was seen as one of the key factors behind the pair's rebound of over 100-pips from Thursday's swing low level of 1.4083. 

The up-move, however, lacked any strong follow-through momentum as investors preferred to wait for today's key macro releases before positioning for the pair's next leg of directional move. 

The prelim UK Q4 GDP print, expected to show that the economy expanded 0.4% q-o-q and yearly rate decelerating to 1.5%, would influence the British Pound during the European session. 

Later during the early NA session, the advance US GDP growth figures for the fourth quarter, along with durable goods orders data would further play an important role in deriving the pair's momentum on the last trading day of the week. 

Technical levels to watch

A convincing break through the 1.4200 handle is likely to accelerate the up-move back towards 1.4235 horizontal resistance, above which the pair is likely to make a fresh attempt to reclaim the 1.4300 mark. 

On the flip side, the 1.4135-30 region might now protect the immediate downside, which if broken would turn the pair vulnerable to again break below the 1.4100 handle and head towards testing its next support near the 1.4030-25 area.