GBP/USD tests support at 1.3350 ahead of key US data releases

GBP/USD is trading near critical support at 1.3350, down 0.35% in early European trading as investors position ahead of important US economic data releases. The pair's weakness reflects broader dollar strength, with the US Dollar Index pushing higher above 106.50. Sterling remains vulnerable as traders await US durable goods orders and consumer confidence data, which could provide fresh momentum for the greenback. Technical analysis shows the pair struggling to hold above the 50-day moving average at 1.3355, with a breakdown potentially targeting 1.3300. European equity markets, including the DAX, are showing mixed performance, adding to risk sentiment uncertainty. The confluence of technical support and upcoming data releases makes this a pivotal moment for GBP/USD direction. A stronger-than-expected US data print could push the pair below support, while disappointments might offer sterling temporary relief toward 1.3400 resistance.