GBP/USD stabilizes in the 1.3500 region on weak USD

• The GBP/USD bounces from intraday lows at 1.3460 to consolidate in the 1.3500 region. 
• The market is weighing the barrage of data from the Bank of England and the worse-than-expected US inflation.
• The US dollar is trading mixed as the odds of a fourth rate hike in  2018 might have decreased on the back of lackluster US inflation.

The GBP/USD is trading at around 1.3500 down 0.39% on  Bank of England's Super Thursday.

In the early European session, the GBP/USD sold-off about 100 pips from the 1.3600 handle to the 1.3500 handle on the back of Bank of England’s dovish comments. In the American session, the US core inflation came slightly below expectations at 2.1% versus 2.2% and the Cable initially rose from the 1.3500 handle. After which the GBP/USD´s bear trend resumed to reach an intraday floor at 1.3460. The market bounced from the level and is now consolidating in the 1.3500 region.

Earlier in the day, the BoE announced that it left its benchmark rate unchanged as it was widely expected, however, it offered a dovish outlook for both rates and inflation.

Meanwhile, both the US Dollar Index and the 10-year benchmark Treasury yield are trading mixed as investors are wondering if a fourth rate hike can be on the cards after inflation came below the market expectations.

GBP/USD 4-hour chart 

The main trend is bearish with the market trading below its 50, 100 and 200-period simple moving averages. Bears can expect support both at the 1.3400 and at the 1.3300 handle. To the upside, the bulls should meet immediate resistance at the 1.3500 handle and further up the 1.3600 psychological level which was the high of the day on Thursday.