GBP/USD remains range-bound near 1.3314 as market participants balance expectations for a 50-bps Fed rate hike in December against ongoing support from the Bank of England's hawkish policy outlook.
The pair is consolidating in the mid-1.3300s after pulling back from the 1.3506 swing high, defended by the 200-period SMA at 1.3314. Bullish USD pressure from hot US inflation and odds of a 50-bps Fed hike in December is offset by the BoE's hawkish outlook supporting sterling. Subdued momentum indicators (RSI near 38) point to a neutral, range-bound outlook.
The GBP/USD pair is trading in the mid-1.3300s as traders weigh hot US inflation data against a hawkish Bank of England. While the pair holds above the 200-period SMA at 1.3314, subdued momentum indicators suggest limited conviction for a near-term breakout.
Resistance sits at the 38.2% Fibonacci level at 1.3365, then 1.3419 and the 1.3506 swing high. Support lies at 1.3322 and the 200-period SMA at 1.3314, with deeper levels at 1.3279 and 1.3217 if those break.
A convincing break below the 1.3314-1.3322 zone would open the way toward 1.3279 and 1.3217, while holding above the 200-period SMA keeps a mildly positive tone with the 1.3506 swing high as the key bullish target.