GBP/USD to challenge critical support at 1.2050 on high US Core CPI

GBP/USD has been moving sideways at around 1.2100. 1.2050 support could fail on strong US Core CPI, FXStreet’s Eren Sengezer reports.

GBP/USD could target 1.2150 if buyers managed to flip 1.21 into support

“An unexpected fall in the Core CPI reading could trigger a dollar selloff and open the door for a decisive recovery in GBP/USD. With the UK economy facing a high risk of recession before the end of the year, however, investors could refrain from betting on long-term GBP strength and key technical levels could cap the pair’s upside in the near term.”

“1.2050 aligns as key support for GBP/USD. With a four-hour close below that level, additional losses toward 1.2000 and 1.1920 could be witnessed.”

“On the upside, the pair could target 1.2150 and 1.2175 if buyers managed to flip 1.2100 into support.”

See – US CPI Preview: Forecasts from nine major banks, soaring inflation to ease off in July