During the mid-North American session, the Pound Sterling retreats and registers losses against the US Dollar, slumping below 1.2500. Data from the United States showed that inflation is picking up, which would deter Fed intentions from cutting interest rates. The GBP/USD trades at 1.2481, down 027%.
Although the GBP/USD closed three days of consecutive gains, it remains downward biased, as buyers failed to crack stir resistance at the 200-day moving average (DMA) at 1.2557. That exposed the 1.2500 figure, which was surrendered by fundamental news.
If the GBP/USD finishes Friday’s session at around the 1.2480, that will form a ‘dark cloud cover,’ opening the door for further losses. The next support would be 1.2400, followed by the year-to-date (YTD) at 1.2300.
On the other hand, if buyers lift the spot price above 1.2500, that would open the door to challenge the 200-DMA.