GBP/USD Price Analysis: Vulnerable to further downside below 1.3700
Following its failures to recover from early-February lows, GBP/USD holds lower ground near 1.3690 during Thursday’s Asian session. The cable dropped to the multi-day low the previous day while extending the early week breakdown of 50-day SMA and an ascending support line from January 11, 2021. Given the downward sloping RSI having a gap to the south before hitting the oversold alarm, the GBP/USD prices suggest further downside.
GBP/USD Forecast: UK inflation adds pressure on the pound
The GBP/USD pair bottomed this Wednesday at 1.3673 but managed to trim part of its intraday losses and finished the day just below the 1.3700 level. Another batch of discouraging UK data weighed on Pound, as the country published February inflation figures. The Consumer Price Index printed at 0.4% YoY, while the core reading came in at 0.9% below the 1.4% expected. The Retail Price Index resulted in 1.4% YoY vs the 1.6% expected. However, Markit PMIs were better than anticipated. The manufacturing index improved to 57.9, while the services one advanced to 56.8 in March, according to preliminary estimates.
