I think your answer is perfect.
However, I would probably interpret the question more as asking how I feel about my progress rather than what I am actually working on. For example, a reply could be “I have learned a lot of vocabulary, but I’m not comfortable with connecting sounds in American English, so I’m focusing on speaking practice.”
Other people may disagree with me! Best of luck!
”Practicing” is correct. “Practice” is both a noun and verb in AE.
Also, speech is connected differently in AE and BE, because they have different pronunciations.
I would just remove the word “speaking”: “I’m focusing on practicing how to connect sounds in American English.”
I also agree with Sydney’s comment.
Thank you for the comment and explanation.
I think British English and American English are quite different.