The GBP/USD pair experienced a decline of 0.27% in response to US inflation data that hinted at a potential delay in rate cuts by the Federal Reserve. This led to the pair falling below 1.2500 during the mid-North American session, trading at 1.2481, down 0.27%.
Despite three consecutive days of gains, the GBP/USD remains bearish as it failed to break above the 200-day moving average at 1.2557. The inability to surpass this key resistance level highlights a downward bias, with support now focused on levels at 1.2400 and possibly extending to the year-to-date low of 1.2300.
If the ‘dark cloud cover’ candlestick pattern forms and the GBP/USD closes around 1.2480, it could signal further losses. On the other hand, a move above 1.2500 could open the door for a challenge of the 200-DMA.
In summary, the GBP/USD pair is currently facing downward pressure influenced by US inflation data and technical factors. Traders will be closely monitoring key support and resistance levels for potential trading opportunities.