GBP/USD Dips Below 1.3050 as US CPI Data Sparks Market Uncertainty
The GBP/USD pair faced another day of losses, dropping below the key level of 1.3050 as investors reacted to the latest US inflation figures. The mixed data on US Consumer Price Index (CPI) led to a reduction in expectations for a 50 basis points rate cut by the Federal Reserve.
Earlier in the day, weak Gross Domestic Product (GDP) figures from the UK added further pressure on the pound. Despite this, there are signs of a potential economic rebound in the UK, which could prevent the Bank of England from implementing more than a 50 basis points rate cut by the end of the year.
Technical Analysis: Bearish Outlook for GBP/USD
The technical analysis for the GBP/USD pair paints a bearish picture, with indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) signaling downward momentum. The RSI hovering near the 50 level and the MACD in negative territory suggest that bearish sentiment may continue in the short term.
Overall, the combination of US CPI data, UK GDP figures, and technical indicators point to a challenging environment for the GBP/USD pair in the coming days. Traders should keep a close eye on key support and resistance levels to navigate the volatility in the currency markets.
