GBP/USD faltering just above the 1.35 handle as Sterling wavers
- Sterling still struggling to develop a recovery against the USD.
- Weaker-than-expected inflation for the US couldn't get the Sterling to recover as a dovish BoE drags on the GBP.
The GBP/USD is looking bearish heading into the European session, trading just above the 1.3500 handle.
The Sterling weakened on Thursday when the Bank of England (BoE) was forced to stand pat on interest rates following an extended run of disappointing economic data for the UK's economy. The Greenback also faced a walkback this week after US inflation figures missed expectations, weakening the US Dollar as expectations of a fourth rate hike from the US Fed begin to decline as inflation appears to be cooling off its aggressive expansion.
Friday is a light showing on the economic calendar, and the Sterling-Dollar pair is set to cap off a volatile week that has seen little definitive movement in the GBP/USD.
GBP/USD levels to watch
The pair is ranging around the 200-day SMA and the overall technical outlook is beginning to shift significantly bearish as the Sterling is unable to meaningfully capitalize on the USD's recoil, and as FXStreet's Chief Analyst Valeria Bednarik noted earlier, "the pair presents a neutral-to-bearish stance for the short-term and according to the 4 hours chart, as it is developing below a flat 20 SMA, while technical indicators have bounced from their daily lows, but remain well below their midlines. The scale leans to the downside for the upcoming sessions, with a break below 1.3445 probably seeing the decline accelerating in spite of dollar's weakness."
Support levels: 1.3480 1.3445 1.3410
Resistance levels: 1.3520 1.3560 1.3600