GBP/USD Slips Under $1.1500 – Eyes on UK CPI Figures
GBP/USD slips under 1.1500 as cable traders await UK Consumer Price Index (CPI) data amid the Bank of England’s hawkish expectations (BOE).
As a result, the quotation pares the most significant daily drop since May in Europe early Wednesday morning.
The Consumer Price Index (CPI) for August, which represents the cost of living in the UK, is due early on Wednesday at 06:00 GMT. Given the recently released lackluster jobless benefit claims, rising energy prices, and the nomination of Liz Truss as UK Prime Minister, today’s data will be eagerly followed by GBP/USD speculators.
The headline CPI is predicted to hit a 30-year high of 10.2% YoY, up from 10.1% before, while the Core CPI, which excludes volatile food and energy goods, is expected to grow to 6.3% YoY during the indicated month, up from 6.2% previously. The CPI is predicted to remain stable at 0.6% in monthly numers.
It’s worth noting that recent wage-price pressures and disappointing jobs report emphasizing the Producer Price Index (PPI) as a significant driver for the GBP/immediate USD’s direction. However, the PPI Core Output YoY may fall to 13.9% from 14.6% on a non-seasonally adjusted basis, while monthly prints may rise to 1.5% from 1.0%. Furthermore, the Retail Price Index (RPI) is set to grow to 12.4% YoY from 12.3%, while the MoM prints are predicted to fall to 0.7% from 0.9% in previous readings.
GBP/USD Technical Outlook
The GBPUSD pair is currently trading around 1.1500, and the price found good support around the resistance of the downward channel visible on the chart. It may show some temporary positive bias before resuming negative trades.
Noting that the recent bullish correction has ended, expect more bearish bias in the coming sessions, with targets beginning at 1.1410, indicating that a breakout of 1.1485 is required to strengthen the expectations of a decline, as its consolidation against the negative tries will push the price to achieve an additional rise, with testing the key resistance at 1.1610 before any new negative attempt.
Today’s trading range is predicted to be between 1.1410 support and 1.1580 resistance.
Today’s projected trend: Bearish
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