The GBP/USD pair has declined, reaching a two-month low, influenced by weaker-than-expected UK inflation data.
Key Factors:
- UK Inflation: The UK Consumer Price Index (CPI) data showed a slower-than-expected increase in inflation, which could lead to further Bank of England (BoE) rate cuts.
- Technical Analysis: The GBP/USD pair is in a downward trend, with potential for further declines.
Technical Analysis:
- Downward Trend: The pair has broken below the 1.3000 level, indicating a potential downward trend.
- Support Levels: The 1.2951, 1.2894, and 1.2793 levels are potential support levels.
- Resistance Levels: The 1.3076 and 1.3100 levels are potential resistance levels.
- RSI: The Relative Strength Index (RSI) is in negative territory, indicating a bearish bias.
Overall Outlook:
The GBP/USD pair is likely to remain under pressure, influenced by economic factors and the Bank of England’s monetary policy. Traders should monitor technical indicators for signs of a trend reversal.