GBP/USD consolidates in a range below 1.4200 handle

   •  Hawkish FOMC minutes/receding geopolitical tensions help ease USD bearish pressure.
   •  Trade war fears continue to cap any meaningful USD up-move and help limit downside.

The GBP/USD pair reversed an early uptick to the 1.4200 neighborhood and has now retreated to the lower end of its daily trading range. 

After yesterday's UK production data-led retracement slide from the fresh 2-week tops, the pair now seems to have entered a consolidation phase and has been oscillating within a 30-pips broader trading range below the 1.4200 handle.

A modest US Dollar rebound, supported by yesterday's hawkish FOMC meeting minutes and easing geopolitical tensions over an immediate US military strike in Syria, was seen as one of the key factors capping gains for the major.

The USD uptick, however, seemed lacking strong conviction amid persistent trade war fears and might continue to help limit any immediate sharp downside for the major, at least for the time being.

There aren't any major market-moving economic releases due from the UK and from the US, the release of usual weekly initial jobless claims might also do little to provide any meaningful impetus. 

Technical levels to watch

Any subsequent retracement below 1.4160 level is likely to accelerate the fall back towards the 1.4130 intermediate support en-route the 1.4100 handle. On the upside, any meaningful up-move back above the 1.4200 handle might continue to confront some fresh supply near the 1.4230 region, above which the pair seems all set to aim towards reclaiming the 1.4300 handle.