Pound Sterling Price News and Forecast: GBP/USD edges higher on Wednesday

FXStreet Team FXStreet

GBP/USD Price Analysis: Trades with a positive bias around 1.2600 ahead of UK CPI

The GBP/USD pair attracts some dip-buying during the Asian session on Wednesday and for now, seems to have stalled the previous day's sharp pullback from the vicinity of the 1.2700 mark, or over a one-week top. The uptick, however, lacks bullish conviction, with spot prices struggling to capitalize on the move beyond the 1.2600 round figure ahead of the UK CPI report.

In the meantime, growing acceptance that the Federal Reserve (Fed) will keep rates higher for longer, bolstered by the hotter-than-expected US consumer inflation data on Tuesday, is seen underpinning the US Dollar (USD) and capping the GBP/USD pair. The downside, however, remains cushioned in the wake of reduced bets for early interest rate cuts by the Bank of England (BoE), which might continue to act as a tailwind for the British Pound (GBP). Read more...

GBP/USD holds below the 1.2600 mark ahead of UK PPI, CPI data

The GBP/USD pair loses traction below 1.2600 during the early Asian trading hours on Wednesday. The major pair flirted with the key 100-day EMA near 1.2573 amid the firmer US Dollar (USD) and the upbeat US inflation data. Investors will take more cues from the UK January inflation data on Wednesday. At press time, GBP/USD is trading at 1.2589, unchanged for the day.

The US inflation data, as measured by the Consumer Price Index (CPI), came in above expectations, with a core CPI rose by 0.4% MoM while headline inflation was up 0.3% MoM. The report highlights the risks of higher underlying inflation in the United States and reduces the probability of a rate cut next month. Atlanta Federal Reserve (Fed) President Raphael Bostic said the rate cuts in the next few months are unlikely. Bostic added that he expected inflation to be near 2% by the end of 2024. Read more...

GBP/USD

Overview
Today last price	1.2601
Today Daily Change	0.0012
Today Daily Change %	0.10
Today daily open	1.2589

Trends
Daily SMA20	1.2665
Daily SMA50	1.2675
Daily SMA100	1.2495
Daily SMA200	1.2565

Levels
Previous Daily High	1.2688
Previous Daily Low	1.2573
Previous Weekly High	1.2643
Previous Weekly Low	1.2518
Previous Monthly High	1.2786
Previous Monthly Low	1.2597
Daily Fibonacci 38.2%	1.2617
Daily Fibonacci 61.8%	1.2644
Daily Pivot Point S1	1.2545
Daily Pivot Point S2	1.2502
Daily Pivot Point S3	1.243
Daily Pivot Point R1	1.266
Daily Pivot Point R2	1.2732
Daily Pivot Point R3	1.2775

Author

FXStreet Team

FXStreet

EUR/USD remains on the back foot around 1.1700

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