GBP/USD Price Forecast: Hits fresh intra-week lows after failure at 1.3660 resistance

The British Pound (GBP) has struggled to gain against the US Dollar (USD) on Wednesday, failing to break the resistance level at 1.3660, which resulted in the currency hitting fresh intraday lows. The decline occurred as bears tested the 1.3620 area, while USD bulls remained passive, waiting for the release of July's Personal Consumption Expenditures (PCE) Price Index.

Analyst Elias Haddad from Brown Brothers Harriman anticipates PCE data to align with the softness observed in July's Consumer Price Index (CPI) and retail sales figures, potentially providing the Federal Reserve with room to maintain a wait-and-see stance. Haddad also advises investors to closely monitor the Dallas Fed trimmed mean PCE and the Cleveland Fed median PCE measures, as released around the New York close, for a more precise assessment of underlying inflation patterns.

The GBP/USD pair is currently trading slightly below 1.3620, exhibiting a bullish outlook, although a failure to surpass the 1.3660 level may lead to a more pronounced downturn. Technical indicators suggest a somewhat weaker upward momentum, with the daily Relative Strength Index (14) nearing 65, having retreated from overbought conditions, and the Moving Average Convergence Divergence (MACD) indicator remaining positive, indicating a potentially positive trend.

A confirmation of the intraday low at 1.3620 could pave the way for a rebound toward a previous resistance level near 1.3565, previously witnessed on July 15 and August 17. Should the pair continue to trade below this level, the next significant support zone may be found around 1.3520, which corresponds to the lows observed on August 17 and 18.

On the upside, the initial resistance lies at the horizontal level of 1.3660, a barrier that has previously restrained bulls on multiple occasions over the past six months. A sustained breakthrough above this threshold could expose February's peak range, ranging from 1.3716 to 1.3730.