GBP/USD Current Price: 1.3029

  • UK December inflation came in below the market’s expectations at 1.3% YoY.
  • Bank on England moving closer to a rate cut amid dismal data.
  • GBP/USD neutral in the short-term, risk skewed to the downside.

The GBP/USD pair was barely able to hold around 1.3030 despite the broad dollar’s weakness, ending the day pretty much unchanged around the figure. The pound tumbled following the release of December UK inflation data, which rose at an annual pace of 1.3%, missing the market’s expectations. The core figure, which excludes food and energy cost, came in at 0.0% when compared to the previous month ad at 1.4% from a year earlier. The Bank of England has turned dovish, with policymakers pledging to vote for a rate cut, and for sure these figures support the case of easing monetary policy.  The UK won’t release relevant data this Thursday.

GBP/USD short-term technical outlook

The GBP/USD pair continued trading below the 23.6% retracement of its latest daily decline at around 1.3050, the immediate resistance. In the 4-hour chart, the price managed to advance some pips above a bearish 20 SMA but remains below the larger ones. Technical indicators, in the meantime, lost directional strength after entering positive ground, indicating limited buying interest. There are no signs of an upcoming decline, although the risk is skewed to the downside, with a break below 1.2960 most likely opening doors for a steeper decline.

Support levels: 1.2995 1.2960 1.2925

Resistance levels:1.3050 1.3100 1.3140

View Live Chart for the GBP/USD

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.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

AUD/USD: Bounces off one-week low on Powell-Mnuchin comments, eyes RBA

AUD/USD probes pullback from multi-month high ahead of the key data/events. Fed Chair Powell conveys economic worries, US Treasury Secretary Mnuchin pushes for stimulus. Risks dwindle amid economic fears, uncertainty over the US covid aid package.

AUD/USD News

Gold: Wobbles near five-month low below $1,800 as Powell, Mnuchin weigh on risks

Gold prices seesaw around $1,77/78 during the early Tuesday morning in Asia. The yellow metal dropped to the lowest since July the previous day before bouncing off $1,764.73. Economic fears, need for stimulus raise bars for the bull’s entry.

Gold news

EUR/USD retreats after its first attempt to break above 1.2000

EUR/USD trades around 1.1940 after failing to break above the psychological threshold. Bulls retain control and would likely challenge the level once again.

EUR/USD News

Ripple Price Prediction: XRP sits on the verge of an explosive breakout

XRP traded as high as $0.78 on November 24 before a brief period of a correction down to $0.456. Ripple price is trading at $0.655 at the time of writing, notably recovering from the dip and aiming to set higher highs.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex Majors

Cryptocurrencies

Signatures