GBP/USD downfall gains momentum, breaks below 1.3300

The GBP/USD pair's reversal momentum from two week high level gained further traction and the pair has now dropped below 1.3300 handle, led by upbeat US economic releases.

A slew of US economic releases, especially stronger-than-expected retail sales data, triggered the initial leg of downfall below the major's immediate support near 1.3350-40 region. 

The selling pressure intensified following the release of better-than-expected capacity utilization and industrial production data, and the pair broke through 1.3300 level. 

Meanwhile, US CPI print for June matched consensus estimates, while Empire State Manufacturing index and preliminary release of UoM consumer sentiment fell short of expectations but failed to provide any respite for the pair.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "the 1 hour chart shows that the price is now capped by its 20 SMA around 1.3360, whilst the technical indicators are crossing their mid-lines towards the downside, pointing for some further slides ahead. In the 4 hours chart, the downward potential seems quite limited, as indicators head lower within positive territory but within positive territory, whilst the 20 SMA keeps heading higher below the current level.

"Support levels: 1.3320 1.3285 1.3250
Resistance levels: 1.3360 1.3390 1.3440"