GBP/USD holds above key support but outlook remains bearish

GBP/USD Forecast: Pound Sterling holds above key support but outlook remains bearish

GBP/USD lost its traction in the early American session on Wednesday and dropped to its lowest level since August 20 near 1.3000 before staging a modest rebound on improving risk mood later in the day. The pair holds steady at around 1.3050 in the European session on Thursday.

Following a bearish start to the day, the US Dollar (USD) gathered strength following the August inflation report on Wednesday. The US Bureau of Labor Statistics reported that annual inflation, as measured by the change in the Consumer Price Index (CPI), softened to 2.5% in August from 2.9% in July. However, the core CPI, which excludes volatile food and energy prices, increased 0.3% on a monthly basis, coming in above the market expectation of 0.2%. Read more…

GBP/USD outlook: Cable cracks psychological 1.3000 support after US inflation data

GBPUSD accelerated lower after US inflation data on Wednesday and hit the lowest in three weeks, pressuring psychological 1.30 support. US inflation data were mainly in line with expectations, but core CPI showed signs of stickiness, cooling bets for 50 basis points rate cut by Fed and inflating the US dollar.

Technical picture on daily chart is weakening, as 14-d momentum slid into negative territory and the price dipped below converging 10/230 DMA’s which are about to form a bear-cross. Read more…