GBP/USD can't get away from 1.35 as May turns into a rangebound mess

• Sterling can't seem to develop momentum into any direction.
• A lack of data for Wednesday leaves the GBP at the mercy of sentiment.

The GBP/USD is trading flat heading into Wednesday's London session, close to the key 1.35 level.

The Sterling has been plagued by lagging economic figures for the UK's economy, and the latest disappointment in an uptick in unemployment claims is keeping the GBP from staging any kind of a meaningful correction. With the Bank of England (BoE) stuck on rates for the time being, the GBP/USD is left to range for the majority of May's trading. 

Adding to the pair's inability to make a desperately-needed technical correction is the Greenback, which is being bolstered through the broader market by rising US Treasury yields, with the 10-year US Treasury hitting its highest yield since 2011. Little UK data is slated for Wednesday, and the pair's is left to overall market sentiment to choose a direction.

GBP/USD levels to watch

Further bearish action could easily slip into the mix, as FXStreet's own Valeria Bednarik noted: "despite the lower low for the year, the GBP/USD pair managed to bounce back to settle around the 1.3500 level, still within familiar levels. Technically, and considering resurgent dollar's demand, the risk is leaned to the downside, given that in the 4 hours chart, the pair is developing below a still horizontal 20 SMA, while technical indicators are posting modest bounces within bearish territory. Speculative interest is at this point not sure whether to push the greenback higher or not but keeps it near recent highs, somehow favoring a dollar continuation rally on the back of interest rates´ differentials."

Support levels: 1.3550 1.3500 1.3460  

Resistance levels: 1.3610 1.3660 1.3700