GBP/USD outlook: Cable falls further after below-forecast UK January inflation
|GBP/USD
Cable extends weakness into second straight day, initially deflated by stronger dollar on unexpectedly hot US inflation on Tuesday, while today’s softer than expected UK CPI data raised bets for BoE rate cut by June and added pressure on sterling.
Wednesday’s drop broke below 200DMA (1.2562) and pressured pivotal Fibo support at 1.2525 (38.2% of 1.2037/1.2827 rally / Feb 5/6 lows).
Daily close below 200DMA is seen as a minimum requirement to keep fresh bears in play, while firm break of 1.2525 would generate reversal signal and open way towards next key supports at 1.2458/32 (daily cloud base / 50% retracement).
Falling 10DMA (1.2615) marks initial resistance, guarding upper pivots at1.2650 zone (converged daily Tenkan/Kijun-sen) and 1.2690 (daily cloud top).
Res: 1.2615; 1.2650; 1.2670; 1.2690.
Sup: 1.2525; 1.2500; 1.2488; 1.2432.
Interested in GBP/USD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.