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Weak UK CPI weighs on GBP - FXStreet

FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik observes that the sharper than expected UK CPI numbers decline in August put pressure on GBP/USD.

Key quotes

"The YoY reading down to 1.2% putting the BOE closer to a rate cut than a hike."

"The pair fell as low as 1.5904, posting there a fresh low for the year and a few pips above November 2013 low of 1.5893 immediate support."

"The 1 hour chart shows price bouncing some from mentioned low, with momentum still heading lower despite in oversold territory, and RSI aiming higher around 22, still far from signaling a recovery."

"In the 4 hours chart technical readings support the bearish bias, with momentum retreating from 100 which supports further declines, to be confirmed on a break below mentioned support."

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