GBP/USD outlook: Cable cracks psychological 1.30 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.
Completion of bearish failure swing pattern on daily chart also contributes to negative signals, with firm break of 1.30 pivot to generate fresh bearish signal and open way towards targets at 1.2965 )50% retracement of 1.2664/1.3266) and 1.2922/1.2894 (55DMA / Fibo 61.8%.
Near-term action is expected to remain biased lower while the price stays below 1.3100 zone (20DMA / today’s high).
Res: 1.3049; 1.3094; 1.3111; 1.3124
Sup: 1.3000; 1.2965; 1.2922; 1.2894
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