GBP/USD lost its traction after rising toward 1.3600 earlier in the day as investors assess the latest comments from BOE Chief Economist Huw Pill, who said that the outlook for the bank rate was uncertain beyond the coming months.
GBP/USD is trading slightly above 1.3560, the Fibonacci 23.6% retracement level of the latest uptrend. If buyers manage to defend this level, the pair could push higher toward 1.3600 (psychological level) and 1.3620 (static level) afterwards.
On the downside, the 200-period SMA forms dynamic support at 1.3540 before 1.3520 (Fibonacci 38.2% retracement) and 1.3500 (psychological level, 50-period SMA, 100-period SMA, Fibonacci 50% retracement).
On the four-hour chart, the Relative Strength Index (RSI) indicator is holding above 50, suggesting that sellers stay on the sidelines for the time being.