A break above $2,685.60 could push prices towards $2,697.75 and $2,710.54, while immediate support lies at $2,653.29. The 50-day EMA of $2,660.61 and the 200-day EMA of $2,637.79 support the bullish outlook above $2,666.86.
Sterling is falling as inflation figures miss forecasts
The British pound remains under pressure following softer-than-expected inflation data published yesterday. The CPI came in at 1.7%, below the forecast of 1.9%, while the core CPI also exceeded expectations at 3.2%.
PPI input fell by 1.0%, more than the forecast 0.5%. Moreover, the RPI fell to 2.7%, versus an expected 3.1%.
This weaker inflation data has raised concerns about the Bank of England’s next steps on monetary policy, dampening sterling’s strength as investors reassess the currency’s prospects against the backdrop of a slowing price growth and moderate economic conditions.
GBP/USD technical analysis
GBP/USD is trading at $1.29784, down 0.02%. Bearish momentum prevails after breaking through a symmetrical triangle pattern. The price is hovering below the pivot point at $1.30158, a critical level.
Immediate support is found at $1.29614, with further support at $1.29397 and $1.29188. On the upside, resistance is at $1.30376, followed by $1.30626 and $1.30943.