GBP/USD reverses a dip below 1.3600 amid hotter UK inflation, impending bull cross
GBP/USD is bouncing back above 1.3600, snapping a four-day winning streak after bulls faced rejection at the 200-Daily Moving Average (DMA), now at 1.3735.
The turnaround in the sentiment around the pound comes on the back of a higher-than-expected UK annualized inflation figure for December, which came in at 5.4%. Hotter UK inflation lifts odds for a Bank of England (BOE) rate hike at its February 3 meeting, the first for this year. Read more...
GBP/USD Forecast: Next bearish target aligns at 1.3530
The British pound has failed to capitalize on the hot UK inflation data out on Wednesday and GBP/USD is consolidating Tuesday's losses near 1.3600. The unabated flight to safety and the broad-based dollar strength suggest that the pair is unlikely to stage a convincing rebound in the near term.
The UK's Office for National Statistics announced earlier in the day 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. Read more...
GBP/USD could extend its slide toward 1.3530 in the near-term
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.
“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.” Read more...
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