GBP/USD finds support near 1.35 mark but struggles at 200-DMA

   •  Finds decent support near the 1.35 handle amid a subdued USD demand.
   •  Thursday’s dovish BoE statement now seemed to cap further gains.

The GBP/USD pair reversed an early European session dip to the key 1.3500 psychological mark and quickly rebounded around 40-pips from lows, albeit lacked any follow-through.

The pair built on its post-BoE steady recovery move from near 4-month lows and touched an intraday high level of 1.3442 in the past hour. A subdued US Dollar demand was seen as one of the key factors behind the pair's modest uptick on Friday.

Investors now seemed to have pared bets of faster rate hikes in wake of the latest softer US CPI print. The same is evident from a follow-through retracement in the US Treasury bond yields, which eventually kept the USD bulls on the back-foot.

However, Thursday's dovish tilt by the BoE capped any meaningful up-move for the British Pound, with the pair now seen struggling to build on the up-move and running into some fresh supply near the very important 200-day SMA. 

From a technical perspective, the pair is yet to find acceptance below the 1.3500 handle and hence, traders are likely to wait for a decisive break below yesterday's swing lows before positioning for any further near-term depreciating move. 

Later during the early NA session, the release of Prelim UoM Consumer Sentiment index, the only highlight from today's thin economic docket, would now be looked upon for some short-term trading impetus.

Technical levels to watch

Immediate resistance remains near the 1.3545-50 region (200-DMA), above which a fresh bout of short-covering could assist the pair to head back towards reclaiming the 1.3600 round figure mark.

On the flip side, weakness below the 1.3500 handle could get extended but might continue to find some support near the 1.3465-60 region, which if broken would turn the pair vulnerable to slide further in the near-term.