GBP/USD consolidates in a range around 1.3200 handle

   •  BoE rate hike speculations lending support.
   •  Resurgent US Dollar capping up-move.
   •  US Q3 Employment Cost Index 0.70%, vs. 0.50% previous.

The GBP/USD pair held on its modest daily gains and seems to have entered a brief bullish consolidation phase above the 1.3200 handle.

Growing market conviction for an imminent BoE rate hike action this Thursday underpinned the British Pound and helped the pair to preserve overnight strong gains back above the 1.3200 handle.

However, resurgent US Dollar demand, led by a modest rebound in the US Treasury bond yields partly offset the positive sentiment. Adding to this, the US Employment Cost Index came in to show a rise of 0.7% q-o-q during the third quarter, up from previous quarter's 0.5% and broadly in-line with consensus estimates, and further collaborated towards keeping a lid on any further up-move for the major. 

Today’s US economic docket also features the release of Chicago PMI and CB consumer confidence but is unlikely to be major game changer ahead of the key events lined up through the course of this week. 

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes: "The pair should accelerate through the 1.3220 region to be able to gain further ground, with the next intraday resistances at 1.3260 and 1.3300. Below 1.3185, on the other hand, the pair can fall to 1.3140, both Fibonacci supports, while below this last, 1.3100 is next."