GBP/USD has struggled to gather recovery momentum after UK inflation data. As FXStreet’s Eren Sengezer notes, the next bearish target aligns at 1.3530.
Cable is unlikely to stage a convincing rebound in the near-term
“The UK's Office for National Statistics announced that the Consumer Price Index (CPI) climbed to 5.4% on a yearly basis in December from 5.1% in November. This print surpassed the market forecast of 5.2% but the Producer Price Index - Input (PPI) declined to 13.5% from 15.2% in the same period, not allowing GBP/USD to gain traction.”
“GBP/USD needs to hold above 1.3600 (Fibonacci 23.6% retracement level of the one-month uptrend) and confirm it as support in order to shake off the bearish pressure. 1.3640 (20-period SMA, 50-period SMA) align as the next hurdles.”
“Additional losses toward 1.3530 (Fibonacci 38.2% retracement) could be witnessed if a four-hour candle closes below 1.3570, where the 100-period SMA is located.”
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