GBP/USD stumbles back from 1.34 once again as bullish momentum evaporates ahead of UK CPI

The GBP/USD is shifting lower ahead of the upcoming London market session and the pair is moving near 1.3360 after a volatile Tuesday window that saw the pair set familiar lows near 1.3340 and back over the 1.3400 handle before settling back roughly where it started.

Wednesday is a packed day for the Sterling, with a raft of data all due at 08:30 GMT, but traders' focus will be on the Consumer Price Index figures, with the year-on-year data for May expected to come in at 2.5%, a mild uptick from the previous reading of 2.4%, but still a welcome recovery for Sterling bulls after the first quarter's data downturn that took the Bank of England (BoE) off of their hawkish perch; markets are now anticipating a rate hike from the UK's central bank sometime in the third quarter, with fingers crossed that economic numbers don't take another header.

A key Brexit vote was won for Prime Minister Theresa May, as British MPs voted 324 to 298 to strike amendment 19, a key article that would have allowed the British parliament to negotiate an entirely different Brexit strategy is MPs vote against the upcoming Brexit deal coming up in the third quarter.

GBP/USD levels to watch

Things are still leaning to the bearish side, and as FXStreet's own Valeria Bednarik noted on the pair's technical outlook, "technically, the pair is still unable to post a bullish stance, barely above a bearish 20 SMA and with technical indicators heading higher within neutral levels without enough strength. The pair would actually need to break above the 1.3450 region to gather additional momentum and extend its advance. The downside, on the other hand, seems better limited at the time being."

Support levels: 1.3395 1.3360 1.3320

Resistance levels: 1.3450 1.3490 1.3530