GBP/USD stays close to session lows near 1.3450

• Cable on the defensive on USD buying.
• US Senate passed tax bill, supporting USD.
• Construction PMI next on tap in the UK docket.

GBP/USD is trading on a soft fashion at the beginning of the week, hovering over the 1.3450/40 band amidst a broad-based buying sentient surrounding the greenback.

GBP/USD attention to data, Brexit

Cable is down for the second session in a row so far today, adding to Friday’s pullback against the backdrop of a strong rebound in the demand for the US Dollar.

In fact, the buck appears bid across the board today after the US Senate passed the tax reform bill, while uncertainty still lingers over Friday’s news regarding former National Security Adviser Flynn and the FBI.

Cable is now prolonging the rejection from recent tops in the mid-1.3500s, which was in time sustained by rising optimism around the Brexit negotiations and the likeliness that the next phase in EU-UK talks could kick in soon. The Irish border issue, however, still remains unsolved and represent a source of some uncertainty for the time being.

Ahead in the session, UK’s construction PMI is only due across the Channel, while October’s factory orders is expected in the US calendar.

GBP/USD levels to consider

As of writing, the pair is losing 0.10% at 1.3458 and a break below 1.3411 (2014-2017 down trend line) would aim for 1.3373 (10-day sma) and then 1.3221 (low Nov.28). On the other hand, the immediate up barrier aligns at 1.3550 (high Dec.1) seconded by 1.3658 (2017 high Sep.20) and finally 1.3700 (psychological level).