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GBPUSD falls to a new post-CPI low after failing to hold gains

The pair slipped below multiple technical levels after a softer US CPI, and comments from Fed Chair Kevin Warsh tempered expectations for an immediate pivot in policy.

Reported · Written up by our desk · Major Pairs

GBPUSD surged after a softer-than-expected US CPI report, reaching 1.3442 and moving toward a swing area between 1.3446 and 1.3465, but the rebound failed to hold. The currency then reversed sharply, falling to a new post-CPI low that erased the inflation-driven rally, according to Forexlive.

The move has turned the near-term technical outlook back to the downside, with GBPUSD dropping below a cluster that includes the 100-day moving average at 1.3399, the 50% midpoint near 1.3399, the 200-day moving average at 1.3395, and the 100-hour moving average at 1.3392. The next support is identified at the rising 200-hour moving average around 1.3375, with a break below it expected to strengthen the bearish case and give sellers more control.

To regain the initiative, the report says buyers would need to push price back above the 1.3399 area and hold it. Forexlive also tied additional selling pressure to remarks from Fed Chair Kevin Warsh after the CPI release, where he cautioned that one encouraging inflation reading is not “mission accomplished” and emphasized that policymakers need evidence of a sustained lower-inflation trend before concluding that price pressures are under control.

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