GBP/USD losses upside momentum, drops back to 1.3350

The GBP/USD pair is once again retracing from Thursday's swing high and has now turned absolutely flat to currently trade around 1.3350 region.

The pair attempted to build on to its Thursday's BOE-led gains but failed to extend the momentum beyond 1.3475-80 previous trading session swing high resistance as prospects of easing in August now seems to weigh on the British Pound.

The pair, however, has held a previous resistance, now turned support, near 1.3350-40 region marked by 23.6% Fibonacci retracement level of the Brexit led sharp fall. Hence, a follow through selling pressure below this immediate support might now negate prospects of any further bullish momentum for the pair. 

Meanwhile, investors now turn their focus towards BOE Governor Mark Carney's about climate change and the financial markets in order to seek additional cues over the quantum of monetary easing at the BOE's next meeting in August. 

Traders will also keep a close watch on US economic releases that includes - CPI, monthly retail sales, manufacturing data and consumer confidence index, which if matched consensus estimates could force the pair to drift lower in the near-term.

Technical levels to watch

On a sustained break below 1.3350-40 immediate support, the pair seems to immediate drop towards 1.3300 handle before heading towards 1.3250 support. Meanwhile, resumption of the near-term bullish momentum might continue to confront immediate resistance near 1.3475-80 region, which if conquered has the potential to continue boosting the pair in the near-term, initially towards 1.3500 psychological mark and eventually towards 1.3530-35 resistance.