- Cable drops further in the wake of UK CPI figures.
- Further weakness in the pair could see a test of 1.3300.
- UK CPI rose 0.4% MoM and 2.4% YoY in May.
The Sterling comes under renewed selling pressure on Wednesday and is now dragging GBP/USD to test fresh weekly lows in the 1.3320/10 band.
GBP/USD weaker on CPI
Cable falls to new multi-day lows in the 1.3320/10 band today after UK’s inflation figures showed headline consumer prices rose 0.4% inter-month during May and 2.4% over the last twelve months, both prints matching initial estimates.
Furthermore, the Core reading – which measures prices excluding food and energy costs – also matched expectations, advancing 2.1% during the same period.
In the meantime, spot is down for the fourth consecutive session, trading in multi-day lows and extending the correction lower following last week’s rally to the 1.3475/80 band.
Later in the session, Cable is poised to remain under pressure via USD-dynamics in light of the FOMC meeting.
GBP/USD levels to consider
As of writing, the pair is losing 0.33% at 1.3327 and a break below 1.3312 (low Jun.13) would expose 1.3205 (2018 low May 23) and finally 1.3039 (low Nov.3 2017). On the upside, initial resistance is located at 1.3375 (21-day sma) seconded by 3474 (high Jun.7) and then 1.3603 (200-day sma).
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