GBP/USD Forecast: Pound Sterling finds support but struggles to rebound
Following Tuesday's indecisive action, GBP/USD struggles to make a decisive move in either direction and trades in a tight channel slightly below 1.3100. August inflation data from the US could trigger the next big action in the pair.
Although the US Dollar (USD) stays under bearish pressure in the European session on Wednesday, GBP/USD finds it difficult to gain traction, with the latest data releases from the UK disappointing market participants. Read more...
GBP/USD eases from daily top on weaker UK data, hovers around 1.3100 ahead of US CPI
The GBP/USD pair builds on the overnight modest bounce from the 1.3050-1.3045 region, or over a three-week trough and gains some follow-through positive traction for the second successive day on Wednesday. Spot prices, however, struggle to capitalize on the move beyond the 1.3100 mark and retreat a few pips in the last hour following the release of the UK macro data.
The UK Office for National Statistics reported that the economic growth remained flat for the second straight month in July as compared to expectations for a modest 0.2% growth. Moreover, the UK Industrial and Manufacturing Production unexpectedly shrank during the reported month. This comes on top of a slowdown in the UK wage growth, which lifts bets for more interest rate cuts by the Bank of England (BoE) and undermines the British Pound (GBP). Read more...
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