GBP/USD breaches 1.3030 post-UK CPI, fresh 2018 lows
|- Cable breaks below the key 1.3040 area on UK CPI
- The pair trades in levels last seen in September 2017 near 1.3020.
- UK’s CPI came in flat MoM in June, up 2.4% YoY.
The British Pound met further selling pressure on Wednesday and is now dragging GBP/USD to print fresh 2018 lows in the 1.3030/20 band, levels last traded in September 2017.
GBP/USD weaker on UK data
Cable tumbled further after UK’s inflation figures tracked by the CPI came in below expectations for the month of June. In fact headline consumer prices rose at an annualized 2.4% over the last twelve months and came in flat on a monthly basis.
In addition, prices stripping food and energy costs also rose below estimates 1.9% YoY.
GBP is also deriving further downside pressure as the recently published inflation figures could pour cold water over expectations of a rate hike by the Bank of England at its August meeting.
In the meantime, the pair in trading in fresh 10-month lows in the 1.3030/20 band, down for the second straight session and opening the door for a potential test of the psychological support at 1.3000 the figure.
GBP/USD levels to consider
As of writing, the pair is losing 0.66% at 1.3024 and a break below 1.3011 (low Jul.18) would open the door to 1.3000 (psychological level) and finally 1.2771 (monthly low Aug.25 2017). On the flip side, the next hurdle lines up at 1.3201 (21-day sma) followed by 1.3207 (10-day sma) and then 1.3297 (high Jul.17).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.