GBPUSD falls to support target.
The GBPUSD has moved lower in trading today after better-than-expected inflation data sent UK yields lower and the GBPUSD lower as well.
The UK CPI YoY came in at 3.9% which is still well above the 2% target but was much lower than the 4.3% estimate and 4.6% last month. The core came at 5.1% vs 5.6% estimate and 5.7% last month. Again still high but lower-than-expected.
Technically, the GBPUSD tumbled to a low of 1.26288 which did crack below the 100 bar MA on the 4-hour chart at 1.2636 (see blueline in the chart), but fell short of the low from Monday’s trading at 1.26279. A move below each is needed to increase the bearish bias for the pair going forward.
There is a swing area below between 1.2602 to 1.26137 (see red number circles). Getting below the area would also needed to step the price lower.