GBP/USD H4 Outlook Update The GBP/USD currency pair fails to capitalise on its mild gains during the day's trading and trades around the psychological 1.3500 mark in the first half of Friday's European session. However, spot prices remain above the weekly low as investors wait for the upcoming release of US consumer inflation data before making their next trade. The British Pound (GBP) received a small boost after positive UK GDP data for July showed economic growth compared to expectations of no change; nevertheless, the positive market effect was brief, as rising speculation over a rate hike by the US Federal Reserve (Fed), driven by Thursday's release of the US Producer Price Index (PPI), is a catalyst for the US Dollar (USD). Technically speaking, the GBP/USD currency pair is now sitting slightly below its 200-period SMA on the four-hour chart, trading near 1.3518. This makes the overall mood bearish, but bulls are close to reaching fresh highs. Nearby resistance can be found in the form of the 38.2% Fibonacci retracement of the most recent swing level, which is located at 1.3522. At the same time, an RSI reading of 42 and a negative MACD histogram suggest the upward move is losing pace. At the same time, near-term resistance lies in the range of the 200-period SMA at 1.3518 and the 38.2% Fibo Retracement at 1.3522. In contrast, the 23.6% retracement higher at 1.3580 is the next level to watch if buyers' positions recover. In turn, initial support exists near the 50.0% retracement at 1.3475; below that, the 61.8% Fibo retracement level at 1.3428 and deeper pullback levels may become vulnerable.
