GBP/USD Tumbles to Intra-Week Lows as Resistance Holds

The British Pound (GBP) has retreated against the US Dollar (USD), slipping to fresh intra-week lows as it failed to breach the resistance level of 1.3660.

Bears have been testing the bottom of the trading range at 1.3620, while US Dollar bulls remain subdued ahead of the release of July's Personal Consumption Expenditures (PCE) Price Index later in the day.

Elias Haddad from Brown Brothers Harriman expects the PCE data to echo the soft July CPI and retail sales data, giving the Fed room to stay on hold.

Technical analysis suggests that failure to break 1.3660 might lead to a deeper correction in GBP/USD, with momentum indicators showing a moderately weaker upside traction.