GBP/USD Price Forecast: Tests Symmetrical Triangle breakdown near 1.3580
The GBP/USD pair trades flat at around 1.3570 during the European trading session on Wednesday. The pair flattens while the Pound Sterling (GBP) trades higher after the release of the United Kingdom (UK) Consumer Price Index (CPI) data for January.
However, the outlook of the British currency has become uncertain as the data has shown that inflationary pressures have cooled down at an expected pace. The UK’s headline inflation has come in lower at 3% Year-on-Year (YoY) from 3.4% in December. In the same period, the core CPI growth cooled down to 3.1%. Read more…
GBP/USD Price Forecast: Seems vulnerable near mid-1.3500s; UK CPI/FOMC Minutes awaited
The GBP/USD pair struggles to capitalize on the previous day’s late rebound from an over one-week low – levels below the 1.3500 psychological mark – and trades with a negative bias for the third consecutive day on Wednesday. The downside, however, remains cushioned as investors seem reluctant to place aggressive directional bets ahead of the release of the latest UK consumer inflation figures and FOMC Minutes.
In the meantime, Tuesday’s disappointing UK jobs report reaffirmed bets for a rate cut by the Bank of England (BoE) in March and continues to undermine the British Pound (GBP). Apart from this, a modest US Dollar (USD) uptick acts as a headwind for the GBP/USD pair during the Asian session. However, dovish Federal Reserve (Fed) expectations might cap gains for the USD and limit losses for the currency pair. Read more…
