GBP/USD flat amidst volatile session as US inflation cools down

GBP/USD trading at 1.2556, experiencing minimal change amid a volatile session with a 90+ pip range.
US Bureau of Labor Statistics (BLS) reports declining inflation in the US, with headline dipping, while core remains stickier at 4% YoY.
The UK jobs market eases, after adding fewer employees than expected, while wages cooled down.

Christian Borjon Valencia FXStreet

The GBP/USD is virtually unchanged amid a volatile session that witnessed the pair traveling at around 90 plus pip range, directionless after a report of inflation in the United States (US). Initially boosted the Pound Sterling (GBP), but in the end, the Greenback (USD) was bolstered. The pair is trading at 1.2556, almost flat.

GBP/USD is almost at around Tuesday’s open, as traders await central banks decisions

The major is trading within familiar ranges after the US Bureau of Labor Statistics (BLS) announced inflation is declining, even though monthly figures were slightly up in headline and core inflation. The Consumer Price Index (CPI) in November was 3.1% YoY but rose 0.1%, exceeding forecasts of 0%. The so-called core CPI met estimates of 4% YoY and monthly readings of 0.3%, up from October’s.

Earlier in the UK London session, the Office for National Statistics (ONS) revealed the jobs market is easing, with 50K new employees added to the workforce, though wages were lower than the 7.7% estimates, came at 7.2%.

Meanwhile, the US Dollar Index (DXY) resumed its downtrend after pairing earlier losses sustained on the US inflation report. The DXY is down 0.20%, at 103.88, while US Treasury bond yields remain flat.

In the meantime, the Federal Reserve would begin its two-day monetary policy meeting that would end tomorrow, with the statement release and the Chairman Jerome Powell press conference. Most market participants expect the Chair to push back against monetary policy easing.

On Thursday, it would be the turn of the Bank of England (BoE), with Governor Andrew Bailey and Co., estimated to deliver a hawkish hold and to keep rates unchanged.

Given the backdrop, the GBP/USD is expected to remain within familiar levels. Unexpected surprises would increase volatility in the pair, with only three weeks left to finish the year.

GBP/USD Price Analysis: Technical outlook

The daily chat portrays the pair is forming a doji, meaning that indecision lies amongst traders. Upside risks would emerge above today’s high of 1.2615, which could pave the way for testing 1.2700. Otherwise, if prices slump below 1.2518, could pave the way to test the 200-day moving average (DMA) at 1.2491.

GBP/USD

Overview
Today last price	1.256
Today Daily Change	0.0003
Today Daily Change %	0.02
Today daily open	1.2557

Trends
Daily SMA20	1.2564
Daily SMA50	1.2348
Daily SMA100	1.2461
Daily SMA200	1.2488

Levels
Previous Daily High	1.2591
Previous Daily Low	1.2533
Previous Weekly High	1.2724
Previous Weekly Low	1.2502
Previous Monthly High	1.2733
Previous Monthly Low	1.2096
Daily Fibonacci 38.2%	1.2569
Daily Fibonacci 61.8%	1.2555
Daily Pivot Point S1	1.253
Daily Pivot Point S2	1.2503
Daily Pivot Point S3	1.2472
Daily Pivot Point R1	1.2587
Daily Pivot Point R2	1.2618
Daily Pivot Point R3	1.2645

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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