GBP/USD eyes 1.2900 on UK CPI

The British Pound is now depreciating further vs. the buck, relegating GBP/USD to test the area of session lows near the 1.2900 neighbourhood.

GBP/USD offered post-CPI

Cable met a wave of selling order after UK’s inflation figures tracked by the CPI showed consumer prices rose at an annualized 2.6% vs. a forecasted gain of 2.7%. On a monthly basis, prices contracted 0.1%, down from June’s flat reading.

Additional data saw core CPI up 2.4% over the last twelve months, also missing expectations

The pair dropped to fresh 5-month lows following the data releases, opening the door for a potential test/breach of the 1.2900 key support while staying under pressure in light of the UK’s jobs report tomorrow and retail sales on Thursday.

GBP/USD levels to consider

As of writing the pair is flat at 1.2965 facing the next hurdle at 1.3035 (10-day sma) followed by 1.3063 (high Aug.7/10-day sma) and finally 1.3106 (23.6% Fibo of 1.2587-1.3266). On the other hand, a breakdown of 1.2937 (low Aug.11) would open the door to 1.2932 (55-day sma) and finally 1.2859 (100-day sma).