GBP/USD weaker below 1.3200 handle despite of mixed US releases

Having posted a session low at 1.3185, the GBP/USD pair spiked to 1.3229 following the release of US economic data but quickly retraced and is now headed back towards the lower end of daily trading range. 

The disappointment from US monthly retails sales data seems to have been negated by better-than-expected weekly jobless claims and Philly Fed manufacturing index, assisting the greenback to regain its lost ground.

Despite of today's mixed US economic data, which has now dampened prospects of Fed rate-hike action at its next week's meeting, the greenback seems to have gained some buying interest amid prevalent uncertainty over the next monetary policy move. 

Earlier on Thursday, the pair jumped to 1.3250 following BOE decision, but came under intense selling pressure as BOE lowered its inflation forecast for the rest of 2016. However, the overall economic assessment was less dovish than the August report

From technical perspective, the pair is reversing from a previous support break-point now turned immediate resistance near 1.3270-75 region and a subsequent break below 1.3200 now seems to have opened room for additional weakness.

Technical levels to watch

On a sustained weakness below 1.3200 handle, the pair seems to drift immediately towards 1.3165-60 area, which if broken is likely to accelerate the slide even below 1.3100 handle towards its next major support near 1.3080-60 region. Meanwhile on the upside, recovery momentum back above 1.3220 level now seems to confront strong resistance near 1.3260-65 area above which the pair is likely to aim back towards reclaiming 1.3300 handle en-route 1.3335-40 hurdle.