GBP/USD quickly rebounds after refreshing session lows, around 1.3370 level

   •  Bulls resisting above 1.3400 handle for the second straight session.
   •  Persistent USD weakness helps limit deeper losses.
   •  US housing data eyed for trading impetus.

The GBP/USD pair came under some selling pressure on Tuesday and refreshed session lows in the past hour, albeit quickly recovered few pips thereafter. 

The latest leg of downslide since the early European session lacked any fundamental catalyst and hence, could be attributed to some technical selling near the 1.3400 handle. 

The downside, however, remained cushioned by a mildly softer tone surrounding the US Dollar, with the pair rebounding around 15-20 pips from lows to currently trading around the 1.3375 region.

Moving ahead, today's release of US housing market data would now be looked upon for some short-term trading opportunities. The key focus, however, would remain on a Senate vote on the long-awaited US tax cut legislation, which would influence the USD near-term price-dynamics and provide some fresh directional impetus.

Technical levels to watch

Sustained weakness below mid-1.3300s could drag the pair back towards 1.3315-10 support area, which if broken might now turn the pair vulnerable to slide further and head towards testing 50-day SMA support near the 1.3270-65 region.

On the upside, bulls would be eyeing for a strong follow-through buying interest beyond the 1.3400 handle, above which the pair is likely to surpass the 1.3435-40 supply zone and aim towards reclaiming the key 1.35 psychological mark.