GBP/USD bounces off lows, back around mid-1.3800s

   •  Brexit optimism helps limit immediate sharp downside. 
   •  Subdued USD demand lending some additional support.
   •  Central bank speakers eyed for some fresh impetus.

The GBP/USD pair held on to its weaker tone through the early European session and refreshed session lows in the last hour, albeit recovered few pips thereafter.

The pair's recent recovery move got an additional boost from Monday's stronger-than-expected UK services PMI print for February and the UK PM Theresa May's comments, saying that they are close to a Brexit-transition deal with the European Union. 

The up-move ran out of steam ahead of the 1.3900 handle and the pair met with some fresh supply on Tuesday. The downside, however, remained supported by a subdued US Dollar price-action, with the pair quickly recovering around 30-pips from session lows.

Currently trading around the 1.3845-50 region, there isn't any major market-moving economic data due for release either from the UK or the US and hence, today's key focus would be on scheduled speeches by the New York Fed President William Dudley and the Bank of England (BOE) Chief Economist Andy Haldane. 

Technical levels to watch

Momentum back above mid-1.3800s might continue to confront some fresh supply near the 1.3890-95 region, which if cleared might trigger a short-covering rally towards its next major hurdle near the 1.3970-75 area. 

On the flip side, the 1.3800 handle now seems to have emerged as an immediate support, below which the pair seems more likely to accelerate the fall back towards an important horizontal support near the 1.3765 region.