GBP/USD bulls shrug off softer UK CPI print

GBP/USD Price Forecast: Bulls shrug off softer UK CPI print; focus shifts to US inflation data

The GBP/USD pair struggles to capitalize on its modest recovery from the 1.2100 mark, or the lowest level since November 2023 touched earlier this week and attracts some sellers on Wednesday. The intraday descent picks up pace following the release of softer consumer inflation figures from the UK, though subdued US Dollar (USD) price action assists spot prices to rebound a few pips from the vicinity of mid-1.2100s. 

The UK Office for National Statistics (ONS) reported that the headline Consumer Price Index (CPI) climbed 2.5% year-over-year (YoY) in December, falling short of expectations for an uptick to 2.7% from 2.6% in November. Moreover, the annual core CPI (excluding volatile food and energy items) rose by 3.2% during the reported month as compared to a 3.5% rise in November and 3.4% anticipated. Read more…

GBP/USD outlook: Holds near new multi-month low, UK and US CPI reports in focus

Cable came under fresh pressure on Tuesday and looks for retest of new multi-month low (1.2099) after recovery from Monday’s strong downside rejection failed repeatedly at 1.2250 zone.

Bears regained control after a mild correction, with loss of 1.2099 low (also monthly cloud base) to open way for test of 1.2037/00 targets (4 Oct 2023 low / psychological). Daily studies remain in full bearish setup, though oversold conditions may keep near term action on hold for some time. Read more…